In the next window choose the NTFS format and click on Start. The other configuration options are not important, the defaults work just fine.
After you formatted the USB Drive, create on it two folders named boot and sources, as shown in capture below.
Next, you need to open the Recovery folder on your computer. By default it can't be accessed, even though you are logged on as Administrator. In order to open it, follow the steps described in the article Take Ownership and Change Permissions of Files and Folders and add 'Full control' permissions for your user.
How To Put System Repair Tools on the USB Flash
Next you have to copy the file boot.sdi to the folder boot from the memory stick.
Then copy the Winre.wim file to the sources folder from the memory stick and rename it to boot.wim.
Now open the folder
'C:\Windows\Boot\DVD\PCAT'and copy the BCD file to the boot folder from the stick.
'C:\Windows\Boot\DVD\PCAT\en-US'and copy the bootfix.bin file to the folder boot from the USB flash.
Finally, go to
C:\Windows\Boot\PCATand copy the bootmgr file to the root of the memory stick.
The structure of the newly created memory stick should be similar to the one from picture below. The boot folder contains the files: BCD, boot.sdi and bootfix.bin files, and the sources folder hosts only the boot.wim file. In the root directory of the stick you have to have the file bootmgr.
NOTE: In order to boot from a flash memory, the removable device has to be the first device in the 'Boot Device Order' section of the computer BIOS.