Problems booting Windows 7 from USB Harddrive

So I just bought Windows 7 and downloaded the ISO, I have no CDs to burn it to, and no USB flashdrive, the only available option is to burn it to an external harddrive.

The first thing I tried to do was to use the "Windows 7 USB/DVD Download Tool" but it just said "No compatible USB devices detected", so I skipped that and used "Universal USB installer" instead.

So far I set up a 10gb partition with a Fat32 format on the harddrive and I extracted the ISO over.

Now to the problem; I went into BIOS and made it boot from the harddrive with the windows 7 install on it, but when the windows 7 install loads up all the USB ports reset so I can't install it! (before you ask, yes I have legacy usb support on)

How can I stop the USB ports from resetting? Did I do anything wrong?
Please help
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  1. Well Windows 7 is not designed to be installed that way so I can't really tell you if it would even work at all. That said a 4gb USB stick is not really that high anymore. A few dollars would get you a USB stick that would be big enough for the Windows 7 installer. For that matter a blank DVD would not cost more that a few dollars ether. Any of those two would be the best bet to ensure a good install.
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