Just de-crpyt the ISO from the disk and place files on flash drive.
Use command promp to set the boot file for your flash drive as the windows 7 boot file.
Select boot from flash drive on your laptopts BIOS and instal like normal.
Yes, exactly this. Another you can do (although, illegal) is torrent the ISO and then copy to a flash drive. Then, if you have a valid key (which you should, if you're looking to install), just use that. Make sure you get an unmodified ISO though.
I used the exact same method for my Asus 1201n after it crashed. Worked like a charm. GL.