Install Windows 7 Via USB

First we will need to mount the content of the Windows 7 DVD ( or the ISO file ) to the external Flash Memory. Open Command Prompt ( cmd ) and write the following commands:

1. To open Command Prompt , click on Start > All Programs > Accessories > Command Prompt
   
   
   
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2. Type diskpart
3. 
4. Type list disk , with this command , all hard disk attached to your machine will be listed. My machine internal Hard disk is 75 GB and my flash memory is 8 GB, as shown below :
   
   
   
   
5. My USB Stick sown above with a Disk ### as Disk 1, so type select Disk 1
   
   
   
   
6. Type clean, this will clear the configuration information, or all information, off the disk.
   
   
   
   
7. Then type create partition primary
   
   
   
   
8. select the partition by typing : select partition 1
   
   
   
   
9. Set it as active by typing : active, this will mark the current basic partition as an active boot partition.
   
   
   
   
10. Format the partition with a Fat32 File System by typing : format fs=fat32
    
    
    
    
11. Assign a letter to the flash disk, type assign letter=v , where v is a free drive letter
    
    
    
    
12. Exit Diskpart by typing : exit
    
    
13. Now we need to copy the Windows 7 Installation files to the USB Stick.
    Type xcopy d:\*.* /s/e/f v:
    where d is the drive letter of the DVD drive that holds the Windows 7 DVD, or the Drive letter of the path that you are saving in it the ISO file of Windows 7, and v is the drive letter that you assigned to the external USB Stick in the previous step.
    
    
    
    
    
    
14. Plug the USB stick to the machine you want to install Windows 7 to, and reboot/or start it up. Make sure that USB booting is set in the BIOS prior to your internal hard disk

reference : http://www.elmajdal.net/win7/installing_windows_7_from_a_usb_stick.aspx