Install Windows From External HD?

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I've got an ISO of Server 2008 64-bit from dreamspark as I'm a scummy student.

Anyway, I want to install it but I don't have any blank DVD's to burn the ISO to. So is it possible to extract it to an external USB hard drive and install it from there. If it is, what do I do?

Cheers.
 
Excellent guide there.

Been meaning to try this out for ages but hadn't got around to it/wasn't sure how it all worked.

Cheers for the link. :D
 
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