Vishal Gupta, a Windows Desktop Experience MVP from India, and owner of one of the popular Windows tips and tricks blog – AskVG, has released and app to automatically create bootable USB drive to install Windows 7 on your computer without an optical drive.
The portable utility has been created by one of AskVG readers, and also works good for Windows Vista and Windows Server 2008. The application has also been featured on Microsoft’s Channel 10, a consumer-focused community.
Click here to read the specifics of he utility and download the same.
Microsoft now has it's "own" free tool too (^_^)