So I finally found, with the help of one of my students, directions to create a bootable USB/Thumbdrive
First, Open a command line (with Admin Rights) window on your Vista/Windows 7 machine then type the following sequence of commands:
- List disk (you should be able to spot your USB stick by the size, take note of the number listed against it)
- Select disk "n" (where "n" is the number from the previous step)
- Create partition primary
- Select partition 1
- Format fs=ntfs quick
And you are done!
Copy over the contents of your build DVD and the next time you boot from this USB stick winPE should appear and do its thing.