Silly as I am I wanted to do the same a few weeks ago. But the Windows 7 installer told me that it can't be installed on an external (USB or Firewire) drive.
You could probably installed a Windows PE version. But since that's not the Real Deal it wasn't an option for me.
Update There's a How-To Install Windows 7 on an external drive which I gonna try in the next few days. Not sure if that's gonna work on a Mac.
Update 2 I tried to install Windows 7 on an external USB drive following the How-To in the first Update. Unfortuantely I didn't get it to work. Getting it copied to the external drive worked well but after rebooting I got an error about not finding this Windows installation.