You can't turn just _any_ ISO into a bootable image, because the ISO needs to contain the drivers for everything needed to run your PC. A normal Windows application ISO would be #%@! out of luck, because there would be no Windows kernel/user dlls for the application to call.
Since there's no problem with re-distributing the OS, Linux has been running from thumbdrives for years in this same manner. Many Linux LiveCDs have a command or menu option that allows you to copy the entire LiveCD to a thumbdrive (which it makes bootable). For the distros that don't, it's still usually pretty easy: see PenDriveLinux.com for instructions on how to put all the popular distros on a thumbdrive.
People read the stupidest things. Like this sig, for instance.
If you burn the ISO to a DVD, manually create a bootable thumb drive of sufficient size, and simply copy the Win 7 DVD over, that works too. I had Win 7 installed on my first-gen EeePC without issue.
Marco ChiappettaManaging Editor @ HotHardware.com
Looks like Microsoft pulled the tool, after claims that they included GPL-licensed open source code without following the license (i.e. they didn't provide the rest of the source, and they added legalese restricting its use).
http://www.withinwindows.com/2009/11/06/microsoft-lifts-gpl-code-uses-in-microsoft-store-tool/
It's not hard to do and with the surge of netbooks there are a ton of tutorials online.
Me, I just use unetbootin works with windows, and many many *nixes.
digitaldd: Me, I just use unetbootin works with windows, and many many *nixes.
I use this all the time. Never though about using it for windows.
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