I remember there was a tutorial/test way back, on a guy who tried to install Steam on his USB flash drive. Does anybody know that particular story/forum, or did somebody here do it already and know how to do it? If you do, please post how to, as I am trying to test and see if this would work.

Ummm.. Maybe parts of these will help?
http://forum.moddb.com/thread/18005/
http://www.dayofdefeat.net/forums/showthre...?threadid=18253

Maybe you can install it by clicking on the icon and then changing the place it installs to? No.. That would still install on your computer but the files would be in a different place.
I don't know much about this..

i dont see why it wouldnt work
just download steam on ur buddies computer it takes like 3 seconds anyway

Im installing it on a flash drive so I can play it on a SCHOOL computer.

full steam ahead (hahah good pun)
dont forget to save ur userconfig