Windows 7, 8, 8.1 Install from USB

[toberkulosis]

So I'm a student and get a lot of software for free; I also just built a PC but I'm having problems with windows.

 

So I watched many videos on youtube about Windows installs and I have the ISO on a USB with the tool from MS however once I type in my product key at the install menu on my rig an error comes up saying Combatibility Report:

"The computer started using Windows Installation media. Remove the installation media and restart your computer so that Windows starts normally. Then, insert the installation media and restart the upgrade. [DO not select !custom [advanced] to perform an upgrade. !custom advance installs a new copy of Windows and deletes your programs and settings"

 

One person on another form said its because I am using an 8.1 upgrade, however all the school offers are upgrades so does this mean I will need to buy the OS myself? Or am I just doing something wrong?

[ShadowCaptain]

If you only have an upgrade key, there has to be an existing windows installation for it to work

 

(AFAIK)

[Ex0Thermic]

are you plugged in to a usb 2.0 or 3.0 port ? (try plugging into usb 2.0 as win7 does not have native support for usb 3.0)

[toberkulosis]

I'm using usb 3 but Its 8.1 that I'm trying to boot

[Ex0Thermic]

try plugging into a usb 2.0 just incase 
also try loading uefi/bios defaults and try installation again 

[toberkulosis]

usb2 did not make a difference