How do I download Ubuntu onto a USB stick? And can I then install alongside Windows 7? Or is it better to boot from the USB.
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See also How can I install Ubuntu without removing Windows? and How do I install Ubuntu from an USB drive / create a live USB-stick in Windows? In short, booting from USB and installing alongside Windows 7 are not mutually exclusive. Booting from USB is even one of the most common ways to install Ubuntu (alongside Windows 7 or otherwise) and doing so will let you test the system before installing it (though it will work a bit differently once installed). – Eliah Kagan Aug 22 '14 at 22:30
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Please atleast try Google first
Install Ubuntu alongside Windows
I know it says Windows 8.1 and you have 7 but just ignore the first step and adjust accordingly
You ca use it from USB but it is MUCH (proberly about 20 times) slower to read/write a USB VS a HDD, try both see what suits you.

Mark Kirby
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Whilst this may theoretically answer the question, it would be preferable to include the essential parts of the answer here, and provide the link for reference. – Eliah Kagan Aug 22 '14 at 22:28