More of an /india/ thing, but that board is pretty much redundant so whatevs.

You have to get the installation files onto the USB stick, and mark it bootable. Then set the netbook's BIOS to boot from it. You should be able to upgrade doing this (depending on how much they stripped out of that release), but I would always recommend just manually backing up anything you want and doing a clean install anyway; much cleaner.

Number of ways to do this here http://www.winsupersite.com/article/windows-7/install-windows-7-with-a-usb-memory-key
Or through general Googling. http://lmgtfy.com/?q=Windows+7+USB

That being said, I wouldn't really suggest going with a release from 'anonymous'. Something or another is probably broke in it, it's likely some crude malware integrated in, and it won't make you into a hacker. If you want to get a little deep and dirty in an OS, throw some Linux on it- Ubuntu if you don't understand things, and something like Arch if you wanna start venturing deeper. If you just want a free Windows though then just get an untouched retail edition from Pirate Bay or a friend or whatever ( http://pastebin.com/7zt05p4t ) and activate it yourself with Windows Loader which is easy peasy ( http://goo.gl/r9zGA ), pretty much guaranteed clean system that you have the satisfaction of knowing exactly what's in it and how it was cracked, as you did it.

Alternatively just stick with XP like I do.

i had already installed this on a desktop for a friend and scaned it for nasty shit i just needed help with a netbook install

I'll agree with >>23. Don't go with some gimped or hacked version; use the real thing. Believe it not, but people who know what they're doing can very easily slip "nasty shit" into the OS that won't easily be detected by simple file scanning. This is especially true if you're initially getting your custom built install medium from someone named AnonUser in the first place. Basically I wouldn't trust your OS no not come pre-installed with a keylogger or backdoor.

I'd also recommend XP for your little laptop because it uses less resources than 7.

SAGE has been used.