(USB) Installation Driver Not Found

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https://www.youtube.com/watch?v=NT0KFR09Svc

I'm trying to install W7 via USB. So I followed this video and well I get the system to boot from the drive but then when I need to select the driver to be installed the computer can't find any. Does the iso file have to manually be put into the drive as well as being partitioned by the Windows CD Tool program?