I've been building bootable Flash Drives with various programs on them, for some time, using the USB Flash Drive format tool from HP. USBFormat.exe - File Shared from Box.net - Free Online File Storage
I've not had any reason to try it yet, but I don't see the difference in making a Flash Drive boot to Ghost or Partition Magic or boot to the Windows Setup.
The only real diff is the size of the Program you're putting on the FD.
It's a big world and I suspect that someone has already done this and just not reporting it here.
I have an Acer Aspire ONE, Netbook, with (of course) no CD/DVD drive.
So I just connected a standard DVD Rom drive via an IDE to USB adapter and loaded Win-7 directly from the boot DVD. Going the Flash Drive route, was not necessary.
Yes, the netbook will boot from any USB device. I used Partition Magic 8 on a bootable flash drive, to repartition my netbook Hard Drive.
And Ghost 11.5 on a bootable flash drive to make a Ghost backup Image of my XP OS prior to installing Win-7.
Using bootable flash drives to run programs on Netbooks, certainly makes life a lot easier.