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Dual boot Windows 7 and Ubuntu on USB

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http://www.unix.com – I am trying to dual boot on an external USB 500GB drive using my laptop.I have Windows 7 installed and booting on 1st partition 230GB now as active primary, 2nd partition is 100GB as primary, and 3rd partition is 135GB as primary. I was intending on installing Ubuntu onto the 2nd partition. I read the article "How to dual boot Windows XP and Linux (XP installed first) -- the step-by-step guide with screenshots". It seems to say that Ubuntu will install alongside Windows in the same partition. Is this true? Can it be installed into it's own partition and dual boot along with wind (HowTos)