Having trouble installing Ubunter Server edition.

I'm running a blade server with no cd, and no disk drive. But I can boot from usb.

Downloaded ubuntu-8.04.1-server-i386.iso and tried to run it from my 1g usb but only got as far as the detect cd rom device driver step. I realize the iso was made for a cd but tried the usb anyway.

I just downlowded Wubi but saw that there was no option to install the Ubuntu Server edition and am now installing Kubuntu KDE4.

Was wondering if there was an option for someone with my hardware limitations to install the Ubuntu Server edition?