Create a Windows 7 System Repair ISO?

You can download an official ISO from Microsoft's digital distributor, Digital River. Using the Windows 7 USB tool, available from Microsoft here, you can make a bootable install USB drive that will allow you to access the recovery tools. No disc-burning required.

Make sure you select the correct ISO for the Windows you are attempting to repair. You can also reinstall from the USB stick, but you will need your own product key that should have come with your computer.

Well, I know the others are trying to help but I am pretty sure none of these answers solved it because I was with the same problem as you. So here was what I found:

Steps:

1 - Open your temp folder through: Start -> Run (type on the search programs and files box "run", or shortcut windows+d) -> type %temp% on the Run box (it will open your temp folder);

2 - Go to the system repair disc tool (Yes, I know there is no disc on the drive): Start -> All Programs -> Maintenance -> Create a System Repair Disc

3 - Once you click to create a disc you are going to receive a message "System repair disc could not be created. There is no media in the device.". It's ok, continue closing ONLY this message, the Create a system repair disc windows MUST still be open.

4 - Now you can see at the temp folder, you have a new file called "somesortofbignumber.iso" around 100 or 200 MB (if you can't see it press F5 to refresh the folder). But still, you can't move, or copy, or anything the file because the system says it is in use. That is your ISO file, you just can't do anything with it yet. So, in this part you have to use a program that let you manage these kind of files. I used one called Unlocker.

5 - After you installed Unlocker the only thing you have to do is: Right click "somesortofbignumber.iso" -> select Unlocker -> select the option "Copy" and the destination folder (remember if you want to rename the file don't forget the ".iso" ending).

After that you can search for a USB tool solution from a ISO file.

It worked very well for me, good luck.