As there seems to be a lot of interest in the forums on this subject perhaps somebody with more experience than me could set out a step by step installation and make it a "sticky"?
The installation is the same as for any other hard drive, except one chooses to install to the USB device/drive, I have done the last 8-9 installations on USB drives, and don't remember even having to do that as a separate step, as was needed for the 2007 release. I just choose
/dev/sdcn as the
/ partition, choose to not have it formatted, as I've already taken care of that before starting the installation, then let it install the OS. When asked where to install grub, if it's the first or only installation on the drive, one chooses the MBR of that drive. That keeps the drive self contained, and portable.