I don't see why not. If the drive is USB, you should be able to see it, partition and format the partitions, and select that/those partitions during installation of your chosen distro.
I recently used SuSE (QTparted) to partition and format an external 300 gig Maxtor for my wife (she won't consider using Linux; only windoze. Win xp refused to for some reason known only to windoze).
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