You can install any version of windows like windows xp,vista,7,2003,2008 using usb drive.As usb have become very common and affordable these days everbody caaries a usb.This tutorial doesnot uses the command prompt method for installing windows from usb instead I will give you a new and a simpler method to install the windows from the usb drive.For this tutorial we will require the following things
Windows Dvd or it’s ISO image
Optical drive emulation software( like demon tools)
USB drive (minimum 4 gb)
All the software that we will be using in this tutorial are free and their downloads links are given in the post.
Here is the step by step tutorial with screenshots on How To Install Windows Xp,Vista And 7 From Usb