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You can't make a bootable CD iso off an usb image, the reason for this is that USB images use syslinux as bootloader (which can only be installed on FAT32) and CD isos use isolinux as bootloader (isolinux won't install on anything but iso9660). Your problem there is that while the image did copy correctly, to boot off a CD it needs a special tpye of boot sector and the iso9660 filesystem, none of which are present in the USB image (Note that dd'ing non-bootable data off USB to CD does work, it's only OS's that can't be transferred like that because they become unbootable).
OK, it is Linux distro that came in several bits from the OEM. You have to download various bits, run some Windows setup, copy the OEM ISO into a specific location and use the application from the Windows setup to create the bootable USB. Obviously I don't want to mention the OEM - as it might cause issues.
Essentially, I just want an environment where I can safely test things out before going to production. Each of their boxes cost about £50K.