Now that Microsoft has released Windows Server 2008 R2 beta (download link) to the public it’s time to get our hand dirty and install this test version. To install Windows Server 2008 R2 Beta you will need a box with a 64bit capable processor. In addition Microsoft has made the following statement regarding system requirements.
You can use the ISO file directly to install Windows Server 2008 R2 in virtual environments and through popular remote installation environments like WDS, iLo and DRAC. Or, create a create a Bootable DVD.
Or , you can use the ISO file of Windows Server 2008 R2 to create a bootable USB drive too. For this scenario you need to create a bootable DVD first or mount the ISO file. After you have gained access to the files on the DVD or in the ISO file, simply type the following commands on a system with the image mounted or physical DVD copy in the drive and the USB device plugged in:
DISKPART> list disk
Select the USB device from the list and substitute the disk number below
DISKPART> select disk 1
DISKPART> create partition primary
DISKPART> select partition 1
DISKPART> format fs=fat32
xcopy X:\*.* /s/e/f Y:\
where X:\ is your mounted image or physical DVD and Y:\ is your USB