I wrote a blog a few weeks back on this subject that used Diskpart. This method is a little easier and without the backing music.
Download and install the Windows 7 USB/DVD Download tool then insert your USB pen and launch the application.
First, browse to your Lite Touch boot ISO file.
Next, click on USB Device.
Select your Flash Drive then click Begin copying.
It will then wipe your flash drive, after a warning, and copy the files.
You will get this error because you’re really supposed to use this on the Windows 7 DVD iso to make it bootable, so ignore the prompt.
And there you go! Couldn’t be easier. This tool can also make a DART recovery disk, apparently. Finally, Xtreme Deployment have a flash drive tool also. It’s located here.
Scriptimus Ex Machina 
I tried this and it did boot my target computer but all the available operating systems were missing from the deployment window… so it was not usable for me.
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Make sure that your selection profile for the media has the OS’ that you want to deploy selected, then make sure you “Update Media Content”.
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Is it possible to use a 1 TB external drive as bootable media?
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Yes it is. 🙂
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This works great on a laptop with a BIOS, but not on a UEFI device (like a Surface Pro), since UEFI will not boot to NTFS, but only to FAT32.
What you can do though is format the drive as FAT32 and then robocopy the contents of the iso file onto it.
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Good info. Thanks mate.
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I work for Xerox, I have a question about MDT
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Sure, do you have a ticket number?
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