--In theory, this is not against the Spotify EULA as it still uses your %APPDATA%. --
So I was looking online and I couldn't find anything for this, so I decided I'd make a Spotify Portable application.
I read up on the EULA and apparently Portable Applications are against it, however this 'application' still uses the %appdata% command, so its still technically using computer resources.
Download Link (VERSION 1): [Link removed; it's still redistribution - mod Chris]
Encase you care, the warranty of SPOTIFY does not warrant third part applications, which I'm going to assume this is so anything that may happen is not my fault. Either way, have fun with it.
14. Warranty
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Copying, reproducing, “ripping”, recording, or making available to the public any part of the Spotify Services or content delivered to you via the Spotify Services, or otherwise any making use of the Spotify Service which is not expressly permitted under these Terms;
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