A required CD/DVD drive device driver is missing - cannot format

[PlayerDot]

Over a year ago I created a bootable USB flash drive and put my copy of Windows 7 on it. It worked wonderfully for two installations, now it starts up the Windows installer normally, but when I try to install it, it gives me this error:
"A required CD/DVD drive device driver is missing"
There follows a list of drives I could browse through for drivers, but my flash drive is none of those. I was worried that something was wrong with my flash drive but it turned out it works just fine on my laptop. The USB ports aren't dead either, seeing as they recognize the device as long as it's not in the Windows 7 installation.

It has been a couple of months since I last installed windows/formatted my computer, but I am sure I haven't had any problems like that the last time.
It's possible that I may be doing something wrong, though.
I am having quite a handful of issues with Windows 7 and my hard drive so I figured formatting would've helped, but apparently it only uncovered even more problems.

I'd be very grateful if you guys could help me out.
I'll give you any information you need.

Specs:
Intel(R) Core(TM) i3-3225 CPU @ 3.30 GHz
Nvidia GeForce GTX 660
8 GB RAM
Motherboard is Asus' P8Z77-M.

 

[ModernWarfare]

When Windows is asking for driver, just click Cancel. You will be brought back to the welcome screen. At the welcome screen, remove your USB drive, insert it back to DIFFERENT USB PORT. Click Install Now again. The installation process will be like usual.

This problem happened to all new version of updated Windows 7 installer. I think, it is due to failure of Windows installer to remain its detection to the USB drive. It lost the connection, and became confused, don't know where to find the USB drive it used to read before.

When we re-insert the USB drive, Windows installer will detect the USB drive back, and continue like usual.

 

[Paul NZ]

This can happen if you're using a USB 3 port. It needs USB 3 drivers, for Win7. If there are USB 2 ports, use a USB 2 port

And it may / can also happen if youre using an ISO. It maybe corrupt or something

 

[PlayerDot]

ModernWarfare, your solution unfortunately did not work.
However, Paul NZ's did.
Thank you very much.

I didn't think of it since it would not let me boot from the USB 2.0 port for some reason, but it's letting me install from there nowafter switching from 3.0 to 2.0.
Really bizzare. I'll keep you updated.

 

[Paul NZ]

I think this message will only appear when you use a USB 3 port for Win7, because there are none on the DVD

But I think you can do it in Win8 because the DVD does have USB 3 drivers on it

 

[PlayerDot]

Huh. It's about to complete the installation, but when it restarted, it actually gave me the option to boot 2 operating systems, both of which were Windows 7. I find that peculiar, since I formatted both drives from the installer.

Any ideas?

 

[Paul NZ]

Start again and dont install it on both drives

 

[boosted1g]

That driver issue is very common.

Should use USB 2.0 for Win 7 installs.

If it happens using USB 2.0 ports the ModernWarfares solution is the fix.

 

[PlayerDot]

Everything is fine now. Thanks guys.