Practical application to run XBMC Live on a non-HD (e.g. USB)
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I am trying to find efficient ways to utilize the amount of space available inside a case. For instance if a case has two 3.5" bays I would rather use them to power 2 1.5TB drives for storage rather than having to worry about a drive or partition for my XBMC Live or other XBMC+OS install.

So how practical is it to run XBMC on an an alternative source. Is running off USB, a SD card, or other non-HD stable and reliable? For instance if I bought a card that had some type of internal capabilities to "hide" the slot (see example here) would it be a great way to run my install?
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Practical application to run XBMC Live on a non-HD (e.g. USB)0