A good way to try Windows 7 (without using your current hard drive) is by using an old hard drive you may have or by getting a low capacity hard drive (30-60 GB) from somewhere like Geeks.com for under $20
I have only just recently added an external hard drive so I'm still learning all the various ways you can utilize one. In your comment above, are you saying I could download Windows 7 directly to my external drive?? TIA