Is it possible to install an OS on a USB key?

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then provided that you have a usb device with enough space to hold windows, i see no reason why you cannot format and install to it.
 
I see a usb drive as a hard drive connecting via usb so again I want to say yes thats possible, however, i have never tried it before. Check it out and let us know!
 
yes u can boot to USB devices. it just depends on ur motherboard if it has the option to boot from removable drives in the bios.

well i formated my usb flash drive to NTFS but it won't let u write into it if u plug into other xp machines. it said it's write-protected. it's probably the NTFS security/permissions
 
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