Install Windows 7 from USB flash drive

I have an ISO image of the Windows 7 installation DVD, but I can't burn it to CD or DVD. I have an empty flash drive with plenty of space. Is there any way I can put the ISO image on it and install from it as if it were a CD?

Microsoft has released a tool to put an ISO of Windows 7 on a bootable USB drive (or on a DVD).

Windows7Hacker has an explanation on where to download this tool and how to use it : Creating Bootable Windows 7 Install USB Flash Drive or DVD Using Windows 7 USB/DVD Download Tool

Yes.

Easiest way is to mark a partition as active (although not always needed, depending on your motherboard).

Next, extract everything in the ISO to the root of the USB drive (use Winrar, 7-Zip or your favourite extraction program.).

Reboot and either change boot order in the BIOS or press whatever key it is on your motherboard to bring up the boot menu (usually F12 or Esacpe).

Choose USB drive.

Done!