Installing Windows 7 on a netbook without a DVD drive
Remember that you can't do an in-place upgrade from XP to Windows 7; you need to do a clean installation. With that in mind, the good news is that you don't have to go out and buy a DVD drive to install Windows 7 on your netbook. Microsoft has released a USB/DVD Download Tool that you can use to easily create a bootable disk image of Windows 7 on a USB thumb drive. You'll need a USB stick that's at least 4 GB in size and you'll need to set the netbook's BIOS boot order to boot from the USB drive. You can find out more here: Click Here