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Trying to install Win7 on my laptop

I am trying to install Win7 on my laptop. My laptop does not have a DVD-ROM so I am using a USB DVD_ROM. I have set the BIOS to boot with this device first and have used the F12 key also to boot with the above said device. It doesn't matter what I do the USB Device is not being recognized and the laptop goes to the Win XP screen. Please help
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Lee W, MVP
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Launch setup from within XP.  
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The problem with that is I have 30Gig hard drive and windows make copies of all the old XP files and labels them windows.old. I and takes up a lot a room. Isn't there a way to boor from this USB DVD Drive?
Thanks
Are you sure it is a DVD drive? Stick a bootable CD in it to see if you can boot to it to make sure. If you look in the BIOS is the USB drive listed?

Is the laptop able to boot up & update the BIOS?
There may be a setting in the bios to enable/disable "allow USB devices at startup"
Did you configure the USB to be bootable? Just copying windows will not make the USB a bootable device.

http://www.intowindows.com/bootable-usb/
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Start your system in SAFE mode. navigate to the hard drive with the win7 install on it and type startup.exe
Make a bootable USB-drive first
http://wintoflash.com/
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Solved the question on my own with some help from the guys