That looks like a Windows Repair disk to me, it won't re-install Windows unless you have already created a System Image on another Drive/set DVDs. Again, if the System Image IS on the USB, I believe it should be on a separate drive to the boot drive...
Note, if you don't have a System Image, best apply to Asus for a set of Recovery disks...
And if you're still within your warranty period, Asus should provide you with a new drive and Recovery disks...