UPDATE: This tool can also be used to create bootable USB drive or DVD of Windows 8 Developer Preview build.
If you download your Windows 7 copy using Microsoft Store or your MSDN/TechNet/Connect account, it comes in ISO file format which needs to burn to a DVD.
What to do if you don't have a DVD drive? You can create a bootable USB drive to install Windows 7.
Microsoft has released a new utility "Windows 7 USB/DVD Download Tool" which allows you to create a bootable USB drive to install Windows 7. It also allows you to create bootable DVD.

You can download it using following link:
How to Use:
- After downloading and installing the tool, when you launch it, it'll ask you to select the path where you have stored Windows 7 ISO file. Provide the ISO file path and click on "Next" button.
- Now it'll ask you whether you want to create bootable USB drive or DVD. Click on the desired button.
- If you select "USB Device", it'll ask you to insert the USB device. If your USB device is compatible, it'll be automatically detected by the tool.
- Click on "Begin Copying" button. Now you'll be prompted to format the USB device. Accept the confirmation.
- That's it. The tool will start copying the installation files to USB device.
- At last, it'll show a message that "Bootable USB device created successfully".
System Requirements:
- Windows XP SP2, Windows Vista, or Windows 7 (32-bit or 64-bit)
- Pentium 233-megahertz (MHz) processor or faster (300 MHz is recommended)
- 50MB of free space on your hard drive
- DVD-R drive or 4GB removable USB flash drive
You can also take a look at some other similar free tools to create bootable USB drives to install Windows using following link:
Ultimate Collection of Best Freeware to Create Bootable USB Drive to Install Windows and Linux
This article was posted by VG in following section: Software, Windows 7, Windows 8.
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Khunna
Awesome!
Yatti420
I should point out this is the official tool for installing windows 7 on netbooks with no optical storage..
WoW
Yatti420
I think that's pretty obvious for everyone who reads this article. Go smoke another one.
karesz71
its working only when you purchase win 7 from microsoft store ,i tried with other 7 iso but the program dont recognize the iso
cartucho r4
Like Xp live... now they are making it user friendly.... MS knows what people want and how to keep their cusomers stick to it.......
Zac
The ISO must be using the UDF file system in order for it to work. Otherwise, it won't recognize the ISO.
FaRReR
...what?
Doesn't ImgBurn do exactly the same thing with DVDs, except better?
I would know. Today I burnt a Windows 7 ISO to a DVD and it booted and installed, just fine.
Ankur Gupta
Hi,
I have a laptop its DVD Drive is not working properly. Therefore I have to install windows via USB drive. Do you know any free software that can create bootable Windows XP USB Pen Drive.
ShuAK
hi VG yaar plz help me i have upgraded to win 7 from win vista it is not the "clean install" it is upgrade. now i cannot rollback to vista i cant find any option. can u help me in this regard?
VG
^^ I'm not sure bot you should get an uninstallation option in "Programs & Features". Look into "Installed Updates".