A few months ago you asked me what it takes to be Xtreme. I told you a few things but I didn't properly reply, and intentionally so.
I hinted that we want, in Xtreme members, people who are friendly, helpful, unbiased and humble, people who tend not to pick fights. I felt, back then, that you weren't quite ready for the colors. Today, I feel you've earned them.
Congratulations buddy. Hoping to see you around more. Keep calm and keep helping =)
The content you need to put into the internal HDD is in disc 1. In disc 1 there should be a folder named content, grab that and put it into your internal HDD.
You know the paths right? content/16 0s/Title ID (look it up on google)/00000002
Once that files been transferred use the second disc from your external HDD or however you usually do it. the install in it about 5.5 Gigs btw
as for partitioning, I don't know how to make that work, don't you have an internal HDD you can use? like a real internal one? I've never really used USB storage for installations so I can't say what to do there.