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first of all your computer should be able to boot from USB. old computer does not support USB boot.
you need to have operating system in ISO file. you can download the ISO file from the internet or if you have original OS CD you can create ISO file by using third party software like "MAGIC ISO". once you have ISO file you can use "IsoToUsb" a small software utility to create the OS bootable USB.
once the usb is ready. plug the usb in the computer where you want to install the OS. go to bios and change the boot order to USB as a first device to boot. restart the computer. the installation will start from the USB. installation process will be same as from the CD / DVD.
i have done this many times for windows7 and windows8 installations.
u must have the files copied from CD onto the USB Flash.connect Flash into port. switch ON laptop. either:1. go into Setup (normally F2). change Boot option to USB, Save and Restart. OR...2. with Flash hooked into USB port, go into Boot Menu (usually F12). select USB and hit Enter. if the files on USB are copied properly, the port should recognize installation files (Auto Booting) starts.this process is followed1st time. once the temp files are copied, the HDD will continue installing but do NOT remove the Flash until all installation is completed.
we can create usb drive as a boot up disk so we can zip windows files in usb and install windows with usb drive