sharpear, welcome to the forum! There are many sites that claims that you can run 7 from a flash/USB drive, some with detailed instructions, but I've not attempted this.
However, some versions of Windows can be run on WD Passport drives. I don't know about now, but they used to have a "sync" software on the drives. This allows you to "carry your computer with you", and you can run it on another computer. I done this with XP, but haven't attempted it with Win 7.
In fact, I formatted the drive, and it's being used to store various .iso images for future installs.
You may want to consider that option. Too, there was a thread, sometime back, where a member figured out how to run Win 7 through the DVD ROM. But that would take some tinkering with the files, and I'm just not sure how legal it is. I don't remember the thread title, mabye one of the mods will see this thread and post it for you.
I hope that you find a solution that meets your needs.
Best of Luck,
Cat
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