Can you install an OS from a USB drive?

I want to install it on my old computer which is currently without an OS. Is there any way to use a flash drive to install it? I have another computer up and running. Is it possible to use that to install it?
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More about install drive
  1. What OS are you looking at? With win7, make an ISO image of the disc with ImgBurn and then use the Windows 7 Download tool to put it on a 4GB+ thumb drive. For XP, try something like this:
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