Generally, we are only able to run bootable CD or DVD from its original media. You cannot just copy the installation files to USB flash drive and run them from the USB drive since bootable CD or live CD contains additional boot loader, different from non bootable CD. Then, here is a program that will let you copy bootable CD and DVD to USB flash drive, USB stick, HDD etc. It means, you can install Windows from the portable media to your computer or netbook. Of course it will certainly facilitate the installation process to netbook since most of netbook not equipped with optical drive.
First, download WinToFlash and extract it to your HDD. Choose newest version. No installation needed, it's a portable software. Run WinToFlash then choose advance or wizard mode. Choose drive of the CD or DVD device and the USB drive. This software using on the fly copy process, means it's able to copy files from CD directly to USB without drop in to HDD. Then just follow the steps until transfer process complete.
Besides copy bootable CD, it can handle several functions such as WinPE to USB transfer, use it as USB media erasing (full of quick) and create the drive with emergency boot-loader. WinToFlash currently supports Windows XP, 2003, Vista, 2008 and Windows 7.