The steps below explain to you how to Install Windows 7 from USB Flash drive or some of you called it Flash disk or Thumb drive or Pen drive using WinToFlash :
UPDATE (March 20 2013) We recommend you to use Windows 7 USB/DVD Download Tool, it's better and simpler: http://www.komku.org/2013/03/how-to-install-windows-7-windows-8-from-usb-flash-drive.html