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#11
You have to extract the files from the disc you have before you can put them on the flashdrive.
Make an image file from the disc using ImgBurn
http://www.imgburn.com/
Then Use this tool to put the image file on the usb and let us know if it works.
WiNToBootic - the ultimate Windows 7/8 USB Boot Disk Maker
Or download a fresh iso image from here and copy that to the usb drive.
latest official Win7 installer ISO with SP1
You can also install from a 4GB Sandisc using that tool.