Installing Win 7 with external drive

I am going to be installing an OEM version of WIN 7 Home Premium on a MacBook Air using Boot Camp. Can I install it using an external CD drive (since the Air does not have one built it) and how much memory should I set aside for it? Recommendation from Apple is 35 gb, but looking for feedback from experienced ones on this site.
 
If the BIOS supports booting from USB or external CD drives then it will work. Not sure about the "memory" question. Just partition the whole drive when you install Win 7.

The word memory is reserved for RAM. The correct term would be hard drive size or hard drive space.
 
You're right, sorry. I meant how much hard drive space. Apparently when setting up boot camp, you have the ability to assign as much or as little hard drive space. Apple recommends something like 32 or 35 gb, but I was just wondering if anyone else had any thoughts.
 
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