Hi there and welcome to LQ!
If you are using ubuntu, as your little forum-icon thingy suggests (:P) there is a great little utility in System > Administration > USB Startup Disk Creator.
Open this up and browse to where your CD image (*.iso) is stored and load that up in the top list box. On the second, select your flash drive which i would recommend to be 1GB or more. Just a warning... the app will wipe completely your flash drive so make a backup or use an old one!
To boot on the netbook, i think you may have to go into the bios and change the boot order, or press a key like F11 or F8 to enter the boot selection menu. Sorry to be vague but i dont own one :P
If this doesnt work for you, please let me know what went wrong, or shout at me for anything ive missed
Regards
James