Microsoft released a free tool called Windows 7 USB/DVD  Tool to help you install Windows 7 on all netbooks in simple steps.

Here are the five simple steps that you need to follow to create a bootable USB flash drive to install Windows 7 from USB device:


Note: You need a USB flash drive with a minimum of 4 GB of free space. And also please backup your data from USB first.

1. Download Windows 7 USB/DVD Tool and install it http://download.cnet.com/Windows-7-USB-DVD-Download-Tool/3000-18513_4-10972600.html


2. Run the program, browse to your Windows 7 ISO image using the Browse button.

3. In this step, you need to select your media type. As we are here to create a bootable USB, simply click on USB device button.

4. Select your USB flash drive from the drop down box and click on Begin copying button.

5. The Windows 7 USB/DVD tool will take a few minutes to complete the procedure.

6. You are done. Reboot you machine and start installing Windows 7