Open up diskpart.exe
select disk 1 (assuming that disk 1 is your USB device listed in the first command)
create partition primary
select partition 1
Format fs=ntfs quick label="Windows"
Now open up an administrative command prompt. We assume your USB device is D:.
(Ensure you are not rooted in your USB drive)
bootsect /nt60 d:
Extract the contents of your ISO to a folder - in this case lets call this c:\ISO
xcopy c:\iso\*.* d:\ /E /F /H