OEM XP Dual boot with Win7

Hi I have an AOA150 120-gig edition with WinXP. and I was wondering,

1.) If I decide to dual boot with win7, will it remove the Fn + 10 hidden partition XP OEM drive?
2.) Is it possible to install win7 at an external HDD and boot from it by mounting the win7 ISO and installing in to the Ext. HDD?
3.) Is it possible to install win7 without removing the hidden OEM partition?

 

Its possible to install Windows 7 via a usb flash drive, but you will need to install it to an internal hard disk, you can always keep the recovery partition but I'm not sure if it will be bootable after Windows 7 install its own boot manager (you'll have the option to boot either winxp or windows 7 without any troubles). My suggestion, make a backup of the recovery partition using the provided software on your netbook, I'm not familiar with netbooks but I know usually they have a software to create recovery disks, if you don't wanna get an external dvd burner, you can just get a cheap usb to ide adapter (around 20$) and connect a normal internal dvd writer for PC on it, it will be detected like any external dvd burners, I've done it twice already on laptops with broken dvd drives.