Using gparted format the drive FAT16, set the boot flag.
Using Archive Manager extract the iso to the drive.
(or just copy the DVD to the drive).
works for me
To create your bootable installer disc, select an ISO image or CD/DVD disc, and click Install
This will create your Windows Vista/7 installer USB. It is worth mentioning here that the tool might also work with Windows 8; however, it has not been tested. Having said that, the developer has mentioned that the supported images include, “Windows Vista, Seven+.” You can install WinUSB either from the Deb package given at the developer’s website (for Oneiric, Natty, Maverick and Lucid), or from the PPA given below.
sudo add-apt-repository ppa:colingille/freshlight
sudo apt-get update
sudo apt-get install winusb
Since WinUSB also works from the command line, you can create a Windows 7 or Windows Vista USB installer by following the command line format given below
sudo winusb --format <iso path> <device>
Once the USB is formatted using the above method, install a Windows partition and edit the Master Boot Record:
sudo winusb --install <iso path> <partition>