Very sorry BillyBob forgot the computer is getting restarted. Doh. :P
This is an easy procedure if you are ready and able (having two partitions at least) to do so. As you are going to install Windows via an Image file, I assume you already got another Operating System (XP?) installed (because the following procedure I am gonna say, required an Operating System).
If I were you:
1. Extract the Image file to a folder in another partition (NOT the partition you are gonna install!)
2. Unlike in Windows NT 4.0, modern OS's Setup.exe runs within windows. So you can simply go to that folder and double click Setup.exe and the setup will launch. (/me doing it while typing this lol.)
3. Choose Advanced Installation.
4. If you click the Advanced button, you will see there are two options Copy the setup files to the hard disk, choose the partition to install. The second one will be already ticked (if not tick it). The first one is no needed as you are already doing it.
5. The rest is self explanatory (hopefully).
Wish you Good Luck!