I think this method would also work to install Vista from your 500GB USB driveMac MKV Converter, a professional conversion tool running on mac os x, can convert mkv with excellent output quality and fast speed.
I personally use AVS Video Converter for all my video conversion. It will convert from just about any format to just about any format. I used it to convert all my DVD rips from .avi to .mp4′s for my iPod. It has full Apple TV support so it can convert your files for you with ease.With Mac FLV video Converter, converting flash video .flv to AVI, MP4, MOV, MKV, WMV.
Here’s some of the features from their site:
Convert Video between Almost Any Formats:
HD Video (inc. AVCHD, MPEG-2 HD and WMV HD), TOD, MOD, M2TS, AVI (DivX, Xvid, etc.), MP4 (inc. Sony PSP and Apple iPod), WMV, 3GP, QuickTime (MOV, QT), SWF, DVD, VOB, VRO, MPEG-1, 2, 4, H.263, H.264, Real Video, DVR-MS, MKV, FLV etc
I recommend you to use Tipard Video Converter. It supports the mutual conversion between all the video formats.
Some newer computers allow a USB drive to be the first boot device. If yours does, you can boot Vista from it.
To see if you can do it you must enter the BIOS and see what your options are.DVD Ripper can best dvd ripper MPEG WMV DivX H.264/MPEG-4 AVC MP4 MP3 WMA excellently. They are usually under a section call “advanced settings” or something similar. Check to see if USB drive is an option for the first boot device.
This video describes how to install Windows 7 from a USB thumb drive.
Input Formats: MPG, MPEG, MPEG2, VOB, MP4, M4V, RM, SWF, RMVB, WMV, ASF, TS, MKV, AVI, 3GP, FLV, MPV, MOD, TOD, MP3, MP2, AAC, AC3, WAV, MID, MIDI, WMA, M4A, RA, RAM etc..
Output Formats: MP4, H.264, AVI, MP3, WMV, WMA, FLV, MKV, MPEG-1, MPEG-2, 3GP, 3GPP, VOB, DivX, Mov, RM, RMVB, M4A, AAC, WAV, OGG, RA etc..
It also has strong editing functions of video effecting, video trimming, video cropping, video joinning.

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