1) I've used Windows USB DVD tool many many times with only one or two problems. Are you saying the program didn't recognize your flash drive, or were you not able to select the ISO of your Windows installation?
Using a different computer running the exact same OS as I was trying to reinstall on the other computer, Windows 7 (64bit), I would get to the part where I was told to select the USB drive, but nothing showed up in the window to select. This is after selecting the ISO file that I created from another program.
2) The ethernet on most computers works right away after reformatting. I'd suggest downloading mobo drivers from the manufacturer's website anyway because the included driver CD is typically out of date.
I needed the motherboard drivers to activate the ethernet. I would have thought the whole processes would have been easier, and in the past it has been. My problem seems to be that the motherboard is newer than windows 7 and myself.
In the end it is working, but I thought my experience might be useful to others so I posted it.