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Making a pen drive bootable

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I would use either FreeDos or GRUB (recommended) GRUB allows you to modify your boot preferences through the menu.lst file and even boot from an ISO. To go into further detail - you can create you own menu and have options like:
boot the Hiren's ISO directly off you USB Device
Have a look around for the walkthrough guides, generally very easy to follow and create - note: not all bootable usb's will work with every system :s