Create Bootable windows 7 pen drive

If you have a pen drive/ removable disk of atleast 4GB you can use it to install new window on your PC/Laptop.

This tutorial below is applicable for Windows 7 and Windows Vista or we can say windows with vista bootloader.
To install windows from USB Disk Drive(PEN Drive) you first need to confirm if your system support boot from USB Disk Drive. You can find these setting under boot settings, boot priority.

Here is the step by step tutorial on how to create Windows 7 bootable pendrive:

1. Insert your Pen Drive to the system and backup all the data from the USB as we are going to format the USB to make it as bootable.
2. Open elevated Command Prompt. To do this, type in CMD in Start menu search field and hit Ctrl + Shift + Enter. Alternatively, navigate to Start > All programs >Accessories > right click on Command Prompt and select run as administrator.
3. When the Command Prompt opens, enter the following command:

     DISKPART and hit enter.
     LIST DISK and hit enter.

Once you enter the LIST DISK command, it will show the disk number of your USB drive. In the below image my USB drive disk no is Disk 1.
4. In this step you need to enter all the below commands one by one and hit enter. As these commands are self explanatory, you can easily guess what these commands do.

    SELECT DISK 1 (Replace DISK 1 with your disk number)
    CLEAN
    CREATE PARTITION PRIMARY
    SELECT PARTITION 1
    ACTIVE
    FORMAT FS=NTFS (Format process may take few seconds) 
    ASSIGN
    EXIT

Don’t close the command prompt as we need to execute one more command at the next step. Just minimize it.
5. Insert your Windows DVD in the optical drive and note down the drive letter of the optical drive and USB media. Here I use “D” as my optical (DVD) drive letter and “G” as my USB drive letter.
6. Go back to command prompt and execute the following commands:

   6.1. Change directory to the DVD’s boot directory where bootsect lives:

      d:
      cd d:\boot

   6.2. Use bootsect to set the USB as a bootable NTFS drive prepared for a Vista/7 image. I’m assuming that your USB         flash drive has been labeled disk G:\ by the computer:

      bootsect /nt60 g:
      (Where “G” is your USB drive letter)

7. Copy Windows DVD contents to USB.
You are done with your bootable USB. You can now use this bootable USB as bootable DVD on any computer that comes with USB boot feature (most of the current motherboards support this feature).
Note that this bootable USB guide will not work if you are trying to make a bootable USB on XP computer.

Here's the problem I faced during above steps:

While running bootsect command it failed.
Sol: I copied all the files from DVD to Hard Disk Drive and executed command from there.