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Microsoft released a new utility called Windows USB/DVD Download Tool to create a bootable USB. If you purchase Windows 7 from Microsoft Store, you can download an ISO file or compressed files.
Windows USB/DVD download tool
Windows USB/DVD download tool allows you to make a copy of your Windows 7 ISO file on a USB stick or DVD. To create a bootable USB or DVD, download the ISO file, then run the Windows 7 USB/DVD download tool. You can then install Windows 7 directly from the USB stick or DVD.
Create bootable media
The ISO file contains all Windows 7 installation files in a single uncompressed file. When you download the ISO file, you must copy it to a disk to install Windows 7. With this tool, you can create a copy of the ISO file on a USB stick or DVD. To install Windows 7 from your USB flash drive or DVD, simply insert the USB flash drive into the USB port or DVD drive and run Setup.exe from the root drive folder.
Use Windows USB/DVD download tool :
Before running Windows 7 USB/DVD download tool, make sure you have already purchased Windows 7 ISO download from Microsoft Store and downloaded Windows 7 ISO file to your hard disk. If you purchased Windows 7 but have not yet downloaded the ISO file, you can download the file from your Microsoft Store account.
How to make a copy of your Windows 7 ISO file :
– Click the Windows Start button and click Windows 7 USB/DVD Download Tool in the All Programs list to open the Windows 7 USB/DVD Download Tool.
– In the Source File box, enter the name and path of your Windows 7 ISO file, or click Browse and select the file in the Open dialog box.
– Select USB to make a copy to a USB stick or DVD to make a copy to a DVD, then click Next.
– When you copy the file to a USB stick, select your USB device from the drop-down list and click Start Copy. If you are copying the file to a DVD, click Start Burning.
When your Windows 7 ISO file is copied to the selected media, you can install Windows 7 by browsing to the root of your DVD or USB flash drive and double-clicking Setup.exe.
Download Windows USB/DVD download tool from .
You can also read detailed instructions for installing Windows 7 via USB.
Also check this utility to create a bootable USB stick.