To create a bootable, external USB device (hard drive or thumb drive) consider the following steps … WARNING: It is possible to format ANY drive with this process so be absolutely sure you target the correct drive!
C:\> diskpart
Microsoft DiskPart version 6.1.7600
Copyright (C) 1999-2008 Microsoft Corporation.
On computer: LAB-WIN7-DEVDISKPART> list disk
Disk ### Status Size Free Dyn Gpt
——– ————- ——- ——- — —
Disk 0 Online 149 GB 0 B
Disk 1 Online 1928 MB 0 BDISKPART> sel disk 1
Disk 1 is now the selected disk.
DISKPART> clean
DiskPart succeeded in cleaning the disk.
DISKPART> create parti prim
DiskPart succeeded in creating the specified partition.
DISKPART> active
DiskPart marked the current partition as active.
DISKPART> format fs=NTFS quick
100 percent completed
DiskPart successfully formatted the volume.
DISKPART> assign
DiskPart successfully assigned the drive letter or mount point.
DISKPART> exit
Leaving DiskPart…
Once the disk is formatted you have to install a windows operating system on it for it to actually be bootable. Most often I am creating such external bootable media so that I can “image” the computers I boot. In this case a full blown version of Windows is unnecessary. Instead, I create a “windows pre-install” boot environment using Microsoft’s Windows Automated Installation Kit or WAIK for short.