I'm not really sure if making your USB drive bootable via iPrep is a problem for all 64-bit OS users, or if it was just me. Either way, I dug around a little bit and read some suggestions in various threads and this method ended up working in the end.
http://files.extremeoverclocking.com/browse.php?c=21
^Go there. Get the HP USB Format Tool and the Win98 System Files. You can find other format tools out there that allow you to use misc system files to format your stick, but that one is just as good as any other I ran across.
Install your Format Tool and everything should be logical from there. Just check "create a DOS startup disk" and then choose the Win98 Sys files you downloaded earlier to do so with. (Make sure FAT32 is selected first). Boom, there ya go, your USB should now be bootable. You can now run iPrep just leave the checkbox for "make bootable" blank.
I've read this doesn't work for all people so I'm sorry if it doesn't help, but it saved me from pulling out my hair. Good luck!
EDIT:
After some more reading, it looks like bootable problem is more mobo related. This might not even be relevant to 64-bit users at all. I was using XP....so maybe I just got lucky that the flashing process worked.
64-bit OS users?, Make your USB bootable
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