Today I had the need to install vista from a USB stick. I’ve been having to deal with horrid crappy slow HP tablet PC’s that refuse to boot from external usb cdrom drives, but they happily work from USB sticks.
Anyway, it turns out the way of getting vista onto a usb stick is really easy!
Check this blog entry out: http://kurtsh.spaces.live.com/blog/cns!DA410C7F7E038D!1665.entry
The method requires you to use diskpart to do a clean on your usb stick, make a primary partition and crucially make that partition active. You can then format it to fat32 and give it a drive letter. Last thing to do is then copy on the contents of the Vista dvd to the stick and you’re done! Wow!