1. When you install a program it generally puts alot of files throughout the hard drive directories and registry, not just in the directory you select. So you may be able to install to an external hard drive but the program will probally only work from that computer you installed from.
2. Even on a 20 GB hard drive, it would take an awful lot to fill that up with just programs. I have dual booted and stored alot of pictures and stuff and still had room. I would have to question what you want to do is legal.
3. If you have alot of document files, pictures, music, etc. stored on your hard drive, I would move those to the external drive not the programs.
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