Windows 7 USB/DVD Download Tool

Microsoft has released an utility to accept an .ISO image and create a USB drive that can be used to install Windows 7.

http://store.microsoft.com/Help/ISO-Tool

http://images2.store.microsoft.com/prod/clustera/framework/w7udt/1.0/en-us/Windows7-USB-DVD-tool.exe

usbtool1

usbtool2