running from a USB 2.0 Flash Drive?

ive heard doing this will vastly improve loading times..

i know it can be done with an option in windows 7 to make a readyboot device...

but, Windows XP....can it be done??? would LOVE to fix my loading times....games runs great on Ultra for me all day long...but my loading times drive me nuts....especially since im constantly switching toons to craft for myself....


if anyone does this, or has any information on how to accomplish this please let me know..

also, im running LOTRO through Steam....id like to be able to still run it through Steam, but if not, im willing to switch clients...