A very usefull tool if your destination machine does not have a DVD drive: Windows Universal Installation Disk.
In my case I did have a DVD R/W available in my main machine - but it is running multiple VM's so i wasnt too excited to take them down. Instead I used the above link - at the time of writing I am busy installing Windows Server 2008R2 for my new SDR station on a Dell T110; using the above software and its going well thus far.
The only *issue* in ran into was changing the boot mode from UEFI to BIOS. This allowed the machine to recognise the boot loader on the USB drive.