Windows 7: Installation problems - winload.exe

I stupidly experimented with using a different OS on my netbook (linux) but was sensible enough to create am ISO image of the pre installed windows 7 that came with the machine using windows usb downloader and following Microsofts instructions.

I've decided Windows 7 is far superior to lighter OS's, even if it is a bit chunkier than I'd like for very fast net access (linux had it beat there easily) its still a million times easier to operate and customize for performance.

I thought it'd be a simple case of inserting the bootable USB flash with my old windows 7 on it and going through the set up process of a clean install.

This was very naive of me...



Everytime I boot from the USB (I have no DVD drive on the netbook), I'm greeted with this message ->

\windows\system32\boot\winload.exe
Status: 0xc0000098
The selected entry could not be loaded because the application is missing or corrupt


.............

Not good for the health this business.

I've nuked my hard drive to all 0's using a bootable hard drive cleaner and tested the USB on another machine, it loads up past the winload.exe screen everytime, so I can assume that ther iso file isnt the issue.

Sadly the few solutions I've found online state that removing USB devices solves the problem, it aint an option as its the only vehicle I have to re-install Windows 7.

Have I just built myself a new doorstop or is there any hope?

What process did you use to create an ISO image of your preinstalled Windows? You would have wanted to save a Windows 7 backup image which is not an ISO but a stored image which is used to reimage your HD from the Installation DVD's Repair console or Repair CD:
Backup Complete Computer - Create an Image Backup - Windows 7 Forums
System Image Recovery - Windows 7 Forums

So what exactly did you create so we can help you use it to restore? Did you make factory Recovery Disks? A Windows 7 REpair CD which is used to boot unbootable Windows 7? An installation DVD? Please clarify.