I have an external firewire drive and would like to use it as a Windows drive for Boot Camp. Is there any way I can go about doing this or if not if there are any ideas if Boot Camp in the future will allow this in the future?
From http://docs.info.apple.com/article.html?artnum=303572
Note: You cannot install Windows XP on an external hard drive.
According to that article you posted, no you cannot.
I apologize, I missed that note and stand corrected:
"I have more than one hard drive, can I install Windows XP on any drive?
With Boot Camp Beta 1.1 or later, yes, but you can install only one Windows partition on any of your computer volumes. The Setup Assistant will allow you to partition drives, or to install Windows XP on an entire drive if it does not contain Mac OS X. Note: You cannot install Windows XP on an external hard drive."
I did some work on google and seems there are some work arounds but they are very complicated which I don't want to get into doing. Maybe with Vista it will be possible.