Firtly if hes just got the laptop, remove the partitions.
Secondly there should be no reason why GW should not run out of an external HDD, however it will be slower and be more prone to lag, your External HDD is going to be using firewire / USB 2.0 at its best and they arnt fast compared to the computers ability to process something o its own HDD, but it should, in thoery work.
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