Zino Drive failure - reinstall from recovery image?

My hard drive on my Dell Zino 530s is not booting anymore. I ran diagnostics and found that 9 sectors are bad and 32 sectors are weak. I have been able to remove the HD and recover all the files using an enclosure. 

I am ordering a new replacement HD and am trying to figure out how to reinstall Windows 7. I was able to recover the Dell recovery image. Is there a way to create a bootable USB that would enable me to reinstall Windows 7 with the recovery image?

Thanks!