How To Install Windows 8 or 8.1 From a USB Device

Here's How:

1. Create an ISO file from the Windows 8 DVD. This is the procedure by which you create a single file, called an ISO image, that contains all the data stored on the Windows 8 setup DVD disc.
   
   Once you have an ISO image created from your Windows 8 disc, come back here and continue on with this tutorial which will explain how to get that ISO file onto a flash drive.
   
   Note: If you already know how to create ISO files with your favorite program, often called "ripping," then do so in whatever way you're used to doing it. However, if you've never created an ISO image, or don't have a program installed right now that does it, please see the linked tutorial above for complete instructions on doing so with a free program.
    
2. Download the Windows 7 USB/DVD Download Tool from Microsoft and then install it.
   
   This free program from Microsoft properly formats your flash drive and then copies the contents of the Windows 8 installation ISO file you have to that flash drive.
   
   Note: Don't worry that this program has Windows 7 in the title. This program works perfectly well with Windows 8 ISO files and can be used in Windows 8, Windows 7,Windows Vista, or Windows XP.
    
3. Start the Windows 7 USB DVD Download Tool program. You should be able to find the shortcut on the Desktop, as well as in your Start menu or on your Start screen, depending on which version of Windows you installed the program on.
    
4. Click Browse on the Step 1 of 4: Choose ISO file screen.
    
5. Locate, and then select, your Windows 8 ISO file. Then click or touch Open.
   
   Note: If you downloaded Windows 8 from Microsoft, check your Downloads folder or your Desktop for the ISO image. If you created an ISO image from your Windows 8 DVD, the ISO file will be wherever you created it to.
    
6. Click or touch Next.
    
7. Choose USB device on the Step 2 of 4: Choose media type screen.
   
   Note: As you can see here, there is also a DVD option. While it doesn't do us much good in this case, since the end game is to get Windows 8's setup files on a flash drive, you could also use this tool to burn a Windows 8 ISO image to a DVD or BD disc.
    
8. On the Step 3 of 4: Insert USB device screen, choose from the drop-down box the flash drive or USB-connected external hard drive you want to put the Windows 8 setup files onto and then touch or click Begin copying.
   
   Tip: If you haven't yet plugged in the USB storage device you're planning on using, you can do that now and then touch or click the blue refresh button to make it show up in the list.
    
9. Click or touch Erase USB Device if you're prompted to do so on a Not Enough Free Spacewindow. If you don't see this, don't worry, it just means that your flash drive or external hard disk is already empty.
   

Reference website:

http://pcsupport.about.com/od/windows-8/a/install-windows-8-usb.htm