Bootable Disk for Windows 7 installation

Heres the background story: I own a Dell xps M1530 with a: 2.0 ghz dual core processor, 3gb of RAM, and (currently) a 360gb 7200rpm hard drive. I have purchased Windows 7 professorial 32bit to upgrade from Vista. Not shortly afterwards my hard drive started to go so I bought a new one(better on of coarse) I want to upgrade the RAM in my laptop to 8gb and I need a 64bit os to do so. I now am using Ubuntu 64bit on my laptop until I install windows. I have legally got the installers for the 64bit version of Windows 7 professional. I am planning on using the same key for the 64bit version which after research I believe will work. Right now I am having problems installing 7. I would really like to not have to waste a DVD to install it. I used some Microsoft utility to extract the ISO to a thumb drive which, I believe is bootable in the purpose of installing 7. Every time I try loading the os from the Thumb drive I get this error message:
Error: Unknown file system
Grub Rescue
Also, the Setup.exe file for installing windows doesn't seem to run under a linux operating system even with wine.
What am I doing wrong here? Any help will be appreciated.

The error you are getting is due to GRUB corruption of your HD boot sector. You need to boot the Win7 installer to wipe the HD of GRUB before attempting install: SSD / HDD : Optimize for Windows Reinstallation

The most reliable method I've found to write Win7 ISO to flash stick is to use Ultra ISO trial version: on File tab Open the ISO, then on Bootable tab Write Disk Image, Format, Write. Boot using one-time BIOS Boot menu.

If this method fails, try Win2Flash: http://www.youtube.com/watch?v=srOoGhm-jcI

If you cannot boot flash using even these methods, or a DVD which is less trouble, then burn to CD free Partition Wizard bootable CD which will autostart to wipe the HD on its' Disk tab. http://www.partitionwizard.com/download.html

gregrocker said:

The error you are getting is due to GRUB corruption of your HD boot sector. You need to boot the Win7 installer to wipe the HD of GRUB before attempting install: SSD / HDD : Optimize for Windows Reinstallation

The most reliable method I've found to write Win7 ISO to flash stick is to use Ultra ISO trial version: on File tab Open the ISO, then on Bootable tab Write Disk Image, Format, Write. Boot using one-time BIOS Boot menu.

If this method fails, try Win2Flash: YouTube - How to install Windows 7 from USB (WinToFlash)

If you cannot boot flash using even these methods, or a DVD which is less trouble, then burn to CD free Partition Wizard bootable CD which will autostart to wipe the HD on its' Disk tab. Free Download Magic Partition Manager Software - Partition Wizard Online

Thanks so much, it worked!

Glad it helped. :) Let us know if there is anything else we can help you with.