Prepare the USB drive as follows
2. List Disk
3. Select Disk 1 (Replace 1 with number reflecting your USB Drive)
5. create partition primary
7. format fs=fat32 quick
Now, a drive letter reflecting the drive should appear. Copy the bits from the DVD to the USB Stick.
If you get errors along the way, simply remove the drive and repeat the process.
Boot from the drive and install normally :)