Go to command prompt and run the following commands:
DISKPART
LIST DISK
SELECT DISK 1 (The disk no. may vary)
CLEAN
CREATE PARTITION PRIMARY
SELECT PARTITION 1
ACTIVE
FORMAT QUICK FS=NTFS
ASSIGN
EXIT
Now you need to copy all the windows 7 source files to the USB either using command or gui.
You should now be able to install Windows 7 by booting with the USB.
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