If you have a Samsung mobile device with Android and are trying to connect to your Windows 7 PC then you will need the Samsung usb drivers. Even if you install Kies it will fail after a while when looking to load the drivers.

To use the Microsoft tool for creating a bootable USB stick for installation of the OS you have to do what you would in a normal install.

diskpart
list disk
select disk #
clean
create partition primary
select partition 1
active
format quick fs=fat32
assign
exit

The secret is to get the program to recognize the stick as a hardrive.