Installing Linux or Windows on SD or USB?

I have the Acer A110, 8gb SSD, memory upgraded to 1.5gb. I've installed Windows XP and Ubuntu 9.04 on it in the past, but would like to have both (Ubuntu & Windows 7). Obviously the 8gb SSD is way to small for this, what other options do I have, apart from upgrading / replacing the SSD? I'm happy with the speed of Linux and Windows on the SSD.

Is it possible to use something like a 8gb / 16gb SD card and install either Windows or Linux on it and then the other on the SSD? The other option is USB, but I would prefer the SD as it's a more "permanent" solution, without having to insert a USB drive every time.

 

Ubuntu (and many other Linux distros) are very easy to install on a bootable USB device. Unfortunately, your AOA110 and my AOA150 do not treat either card reader as a normal bootable device. Although it's certainly possible to place grub and a small /boot partition on your 8GB SSD along with your WinXP partition, you'd also have to create a custom initrd.img file that would be capable of mounting the card reader. My advice - go for the USB dongle.