Ugh, this is a major coincidence. Robert is finishing up an article that discusses this exact same thing. If only we were a day sooner with it! We are using a very similar method to the one you mention, but also talk about two more, using diskpart and also the Windows 7 USB/DVD Tool, which seems to be easier than any other method out there (it's all GUI based, official tool from Microsoft).
You may wish to give that one a try as well, just for fun: