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VM created on Win 8.1 Pro Laptop cannot find win 7 iso file on USB

VM cannot find USB to load Win 7       
I have a Windows laptop with Win 8.1 Pro installed. I turned on Hyper-V and created a VM. Everything worked up to that point. I also downloaded the Win 7 iso and placed it on a USB thumb drive.  I also downloaded the Win 7 installer.
When I "start" the VM, I get a black screen with a message the VM could not load an OS.
It appears to me that the VM does not know where to look for the OS. I cannot find any way to tell it where to look.
I spent over $300 for upgrades to Win 8.1 Pro and a licensed copy of Win 7 so I could run Win 7 on my laptop as I need it to run UPK (which is not compatible with Win 8).
As a last resort I went to the Micrsoft store in Miami and offered to buy a Surface Pro 3 if they would install the VM and Win 7 on that for me. They said it was very easy to do and I would have no problems, etc., etc., etc. In other words they did not have
a clue about what I was talking about.
I hate to see over $3000 worth of hardware collecting dust on my closet shelf because I cannot use them. I am hopeful someone here can help a non-techie make this thing work.
Thanks in advance,
PS - Went to the Apple store last night and was shown a MacBook Air with Parallels installed. It was running Apple stuff on the Apple OS and MS Office 365 on Win 7. It was all very seamless so am leaning very much to going with Apple as a solution.
You don't say that you attached the iso to the VM.  The easiest way to do
that is to connect to the VM and then on the console, pull down the
"Media" menu, Select "Insert Disk", then browse to the ISO and select it.
Then under the "Action" menu, select "Reset".
You can also mount an iso in the settings for the VM.
Bob Comer
Read the other 2 answers

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