Install windows 7 from usb

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The steps for preparing the USB Disk.

1. Diskpart
2. List Disk
3. Select Disk 1 (Replace 1 with number reflecting your USB Drive)
4. clean
5. create partition primary
6. active
7. format fs=fat32 quick
8. assign

Now, a drive letter reflecting the drive should appear. Copy the bits from the DVD to the USB Stick.
If you get errors along the way, simply remove the drive and repeat the process.