With the release of computers without optical media the need to install your OS from a USB drive emerged.
Untill the begging of 2009 this was not a user friendly process, although the tools existed.
The last months two utilities made their appearance.
The first one is coming directly from Microsoft and it is simply called: Windows 7 USB/DVD Download Tool
With it you can transfer an ISO image of the Windows 7 DVD to a USB Stick. The whole process is but 4-5 mouse clicks and it works with no gliches.