I have a MacBook and I'd like to install Windows 7 via USB. I've created the partition using Boot Camp and I've got an .ISO of my Windows 7 install disk. Is it possible to install this via USB, instead of burning a DVD?

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Through Disk Utility you can restore the Windows 7 ISO onto the flash drive.
When you hold option at startup to access the boot options the disc will appear.

Note: When you do the restore through Disk Utlity make sure your flash drive is partitioned correctly.

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It needs to be partitioned as Mac OS X journaled (HFS+) - this will enable the GUID partition map (so the boot menu can read the ISO). Next, click source and within the finder locate the ISO and you're set.

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Make sure to run the Bootcamp assistant before you try to boot off the flash drive. Follow the instructions in How to install Windows 7 from USB, then see if the computer will recognize the flash drive when you boot up. To choose different boot media when a Mac starts, press Option, then select the flash drive if it appears.

If that doesn't work, post in the comments; there may be more steps required to get it to boot off of the external drive.

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With Lion, Apple has added an option to BootCamp that will create a bootable USB Windows 7 install disk, this option is only enabled in Mac models which don't have an optical drive. To enable this option just follow this guide.

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Welcome to Super User! Whilst this may theoretically answer the question, it would be preferable to include the essential parts of the answer here, and provide the link for reference. – slhck May 23 at 7:41
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