Want to install Windows 7 on your Windows XP netbook, but don't feel like buying the Windows 7 installation disc and a USB DVD drive to do it? Microsoft is now offering netbook users a way to download the operating system directly to a PC and use a USB Flash drive to install it.
Here's how it works. First, you visit the Windows 7 for Netbooks page and purchase and download the version of Windows 7 you're interested in. You can choose Windows 7 Home Premium, Windows 7 Professional, or Windows 7 Ultimate. Windows 7 Starter isn't an option.
Once you've downloaded disc image, you can use the new Windows 7 USB/DVD Download Tool (WUDT) to copy the installation files to a 4GB or larger USB flash drive and then use that USB stick to install the operating system.
via CNET and ZDNet
Post from: Liliputing
Microsoft to launch tool for installing Windows 7 from a USB flash drive