Yup you can run WinXP from an external disk, USB or FireWire. It's rather quite simple.
The first thing you need to do is format your 300gb drive as a FAT32 file systems (if you don't do this beforehand your drives & partitions may not show up correctly in the Windows installer), you can do this in the OS X terminal:
newfs_msdos -F32 /dev/rdisk#s1
Make sure to check your partition ID's as rdisk#s1 might differ from your setup.
Restart your Mac and boot from the Windows CD by holding down the "C" key on startup. Install Windows as usualy on to your external drive. To boot in to Windows after installation hold down CMD+OPTION+SHIFT+DEL @ startup. You can also use a program such as refit as a "bootloader" of sorts which makes it a bit easier to start up in whichever OS you want to use. Just install your Boot Camp drivers from the CD and off you go!
Cheers mate.