It certainly is possible... but you'll need to study hard on the subject, as it can be a real pain.
Both Linux and Windows platform can run off a cd, but Windows is a lot trickier to deal with.
As I am not at work right now, i can't pass you any of my links, but if I get a second during the week, I'll try and post em. Otherwise try and pop a PM to a guy called Arkaine (and some number, 23 or 32. or something) here at these forums, he's a real champ on bootable linux and might also help you out if you ask nicely.
He ocasionally pops in at the folding community forum
Cheers, Flix