To setup the Windows 7 from your hard disk, follow the steps below:

1. Install a virtual CD/DVD drive in your existing system. So many applications are
available there. I recommend Magic Disc virtual DVD/CD Rom as itis free and
easy to use
2. Get the ISO image of Windows 7 or vista and mount it in the virtual CD/DVD
drive
3. Now, copy the entire files from the virtual disk to any of the available drives. But
keep it in your mind that the drive must not be the drive in which you want to
install the Windows. Suppose, you want to install Windows in the D drive then
copy the files in the drives except D e.g F:/Windows 7
4. Copy the bootmgr file and boot folder to your present root drive, generally C. By
default, the boot folder is hidden. So, change the corresponding options in
the Windows explorer to show the hidden files and folders as well as the system
files
5. If you are using Vista then copy the file bootmgr to C (root directory)
6. Copy the file called as Windows7bootboot.sdi from F drive (as per as this
example) to the folder boot at the root drive. Similarly,
copy Windows7bootbootsect.exe to the root directory itself
7. Now, create a folder under the root directory and give the name as sources
8. Copy the boot.wim file from F: >Windows7sources in the folder source which
youve just created
9. Once done, run the command prompt as administrator. For this, right-click
on Start menu > Accessories > Command Prompt and select Run As option.
Select the user as Administrator by selecting the corresponding radio button(refer
to the following screenshot)

10. Type the following command in the command prompt
For Windows 7: C:bootbootsect.exe /nt60 C:
For Vista: C:bootsect.exe /nt60 C:
and hit the enter key
11. Now, you have to change the boot system partition name. You can choose any
name that you prefer.You can do this by using the label command in the
command prompt. For example: E: label mynewdrive. Remember the name you
have put in the command prompt and restart you computer
12. The setup process will automatically start to run. In the upcoming option, you will
see two options: 1) Install Windows 2) Repair my Computer. Chose Option 2
13. In the WinRE System Recovery Options window open the Command Prompt
14. To format the E drive, type the command format c: /q. This will format the drive
in FAT 32 file system
15. You can also format the drive in NTFS file system. To do so, type the
command c: /q/fs:ntfs
16. You should be asked to enter the name of the partition. Enter it accordingly ( e.g
mynewdrive) before the formatting process begins
17. Now, you can proceed as usual