Installing windows 7 from a virtual disk

I recently found that my windows is corrupted and I will have to do a fresh install. My question is can I do it with a virtual disk? I want to do it with a virtual disk because my laptop's reader is broken and my flash drive can't hold the installation ( it's 4gb and the install is 4.15 gb ) . So is it possible to do an installation where my old windows goes away and gets replaced by my new one, in other words installation with a format on my main partition. Sorry if I was confusing but I am bad at explaining stuff.

Use the latest official installer for your licensed version which is no larger than 3.1 gb, written to stick with the tool also provided in Clean Reinstall - Factory OEM Windows 7.

The steps in that tutorial will assure you don't forget anything, do a perfect install, then set it up and maintain it perfectly for as long as you stick with the tools and methods given.

Put your wireless driver on the stick after its prepared so if it isn't provided during install and ready to connect, you can install it to connect to network, enable Automatically deliver drivers via Windows Update (Step 3) then run all rounds of Important and Optional Windows Updates, with reboots, until no more are offered when you Check for Updates. Only then should you import any drivers still missing in Device Manager, or if only a Standard VGA Display driver is given.