I don't think copying the supplied Recovery Program from the supplied DVD disc to USB Flash Drive will do. I've already tried that and it still asked me to insert the DVD disc which I can't as I don't have an external DVD drive. I copied the contents from the DVD disc to a USB flash drive by making an ISO image of it and transferred it to USB Flash Drive using an PowerISO (you may also use the free IMGBurn or Daemon Tools Lite). It booted alright and that the process of recovery will finish but it didn't. Read this especially my post at #10:
http://vip.asus.com/forum/view.aspx?id=20100212055633187&board_id=20&model=Eee+PC+1005HAB&page=1&SLanguage=en-us
And while you are still able to access your recovery program in the hidden partition of your hard drive using F9, I suggest that you back up that hidden partition and the last partition which is 16MB in size and contains the Boot Booster program which skips the BIOS screen and shaves about 5 secs in boot up time. If that recovery program gets corrupted or erased, you won't be able to restore it using the recovery disc. You will be forced to use the recovery disc everytime you need to restore your computer to factory defaults. Read this especially my post at #11:
http://vip.asus.com/forum/view.aspx?SLanguage=en-us&id=20100212055633187&board_id=20&model=Eee%20PC%201005HAB&page=2&count=11
You may backup those two partitions (first and last) to an external USB hard drive using Norton Ghost or the free Easeus ToDo Backup Home Edition:
http://www.todo-backup.com/products/home/free-backup-software.htm