Using a usb thumbdrive for games?
I was wondering if its possible to use a micro SD card reader and a micro sd card to play games off of, or is it mandatory to have an actual external HD for USB loader?
This is an option, but make sure you check out the compatibility list here (note: incomplete but contains data for SDHC, MicroSD, etc).
Do I need to do anything different than if I was using a usb Hdd, or can I just treat it the same way and follow the USB HD guides on this site?
Most loaders supportt SD Loading so you treat it just like an HD. Won't get many games on it though.