I've heard lots of reports that you can boot from USB drives on Intel Macs. I've only done it on Firewire drives, but I have a small USB external drive at home that I'm not using any more. I'll try it out tonight and give a definitive report later.
Edit: Actually, my external firewire drive here, which has OS X installed on it as a backup, is dual firewire/usb. Give me a few minutes and I'll swap over the cables and reboot.
Edit2: Boots no problem using USB. It's noticeably slower to boot, I didn't time it though, but it's usable. I'll try the other drive later or at the weekend, whenever I can get time, and try it. One thing to note is, it's not a clone of my drive, it's a separate install of OS X.