loopback install on a win/ntfs system?

[Freakazoid]

Recently ran into topoligi linux and got an idea. Is it possible to install gentoo in a loopback file? the couple howto's I found seem a bit dated, but I do have the important part: a linux box (that runs gentoo already, but runs headless most all of the time)

For the start of the install I was planning on mounting the appropriate place on the winbox via samba to do everything. Would there be anything special to it, or am I right in thinking that I could pretty much loopback mount the thing on my linux box then proceed with the install documentation?

The only problem I can see offhand is booting, i'm wondering how. Topologi can supposedly work grub into the xp boot manager (running xp pro on the winbox) but I wouldn't have a clue how to do that.

So is this a plausable idea?