The ISO for the Repair CD does not have a Setup file - it is an ISO meant to be burned to a CD then booted only. In the past WinToFlash has worked best to write it to flash stick. If this fails, try using UltraISO trial version: On file tab Open ISO, on Bootable tab Write Disk Img, Format, Write. Boot under USB or HD's.
It would be better to find the installer ISO for your version Win7 so you have the ability to clean reinstall if necessary as well as the Repair console on second screen after booting. This tool or UltraISO is easiest to write it to stick: Universal USB Installer – Easy as 1 2 3 | USB Pen Drive Linux