How to boot Windows 2008 R2 Server from usb drive/stick

I have to install Windows 2008 R2 Server on Dell PowerEdge 2950 server and we decide to do this booting and installing it from USB stick. I have a 16 GB USB stick and it is more then enough.

Format the thumb drive

1. from a DOS prompt execute: diskpart
2. list disk
3. select disk 1 (assuming disk 1 was your thumb drive in the above list disk command)
4. clean
5. create partition primary
6. select partition 1
7. active
8. format fs=fat32
9. assign
10. exit

Copy the Win2008 R2 install files

1. xcopy d:\*.* /s/e/f e:\ (assumes your dvd is drive D: and your thumb drive is drive E:\, adjust accordingly)