installating from iso

Hello, I thought I would try installing Fedora 9. Unfortunately, my laptop has no optical drive. I made a bootable USB stick, and like I said, I manage to boot from it, but the fonts are corrupt. Still, I can move to text mode (say ctrl-alt-f1) and use the Live version quite well. Since I have Vista, I thought I might have an easier way of installing Fedora without having a DVD. I thought of downloading the ISO and then looking for a boot loader or something of that sort that can "boot" from an .iso file (on a windows partition.) I know one can mount an .iso on linux to a directory, so I see no reason why a boot loader could not do something like that as well. However, I did not manage to find something to allow me to do that. Looking on google leads to all kind of "hints" that it is possible to somehow install fedora using the DVD .iso (on the Vista partition) or from the Live CD on a USB stick (without being connected to the internet), but nothing explicit. Anyone has experience with it? Also, I hope Fedora 9 installation will make it easy to create a new partition for it (or maybe I should first deal with using gparted to prepare a partition properly)... Thanks.