SirDice said:You don't even need third party tools to do that. Format the stick, put a boot sector on it and copy the files from the CD/DVD to the stick and you're done.
You need. At least in my case, first virtual optical drive (Daemontools Lite) to mount iso-file directly. Then little surprise, I had Vista 32-bit, and iso for for Win7 64-bit. If you write bootsector to stick with Vista's bootsect tool, it will not boot Win7 setup, and you cannot run bootsect tool from that Win7 iso-file with 32-bit Vista. Of course it would have been much easier to burn iso file to DVD, but I did not have blank DVD's on hand at that time. I don't remember which tool I used for making that stick work, probably Unetbootin.