Creating a backup disc/usb for netbook

A friend has a netbook and she likes my 5yr old Linux install on my laptop, because of speed and reliability of Linux.
Now if for some reason she changes her mind, we'd like to put Win7 back on the unit.

Can you back up Win7 onto a USB? Or how would you go about doing a fresh install back on the netbook?
I have a retail copy of Win7 (my copy) I'm assuming I could use that, but use the key that's on the box from the netbook itself?
Not sure how to go about this.

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More about creating backup disc netbook
  1. Get a new hard-drive for the netbook, install Linux on that, keep the original drive for backup.

    You can back up Windows 7 to a usb drive, use a cloning program like Ghost, Clonezilla, etc...

    Then can restore the image back on the drive. Extra hard-drive is simpler and more fool-proof though.
  2. if the hard drive is big enough you can dual boot windows and linux--a newer linux version such as ubuntu will recognise windows is already installed and let you pick from either windows or 7 at startup--best of both worlds that way
  3. win7 has a built in option for creation of recovery disk

    go to start > in search box type in System Repair
    it should be the first option that comes up
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