Create Windows 7 and Windows 8 Bootable USB Drive or DVD Using Official “Windows 7 USB/DVD Download Tool” from Microsoft

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:

Download Windows 7 USB/DVD Download Tool

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

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