Installing Windows 7 through USB

I have a HP Pavilion dv6000 ( pretty old hehe )
I want to install Windows 7 through a USB, I have the Windows 7.iso file, My DVD drive has gone berserk and there is no way to fix it. I read and I was like is it that simple? I just mount the iso with daemon tools and install it? I want to do a clean installation and if I mount through daemon tools is going to store the files somewhere on the computer?

I am really confused...
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More about installing windows
  1. You can search for the microsoft windows 7 USB/DVD tools, that can make a 4Gb usb memory stick bootable and having all the necessary windows file on for installation
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Windows 7 USB HP Pavilion