Windows 7 install via boot camp assistant fails

I have a iMac 2.8 Ghz Intel Core 2 Duo with Mac OS X Version 10.6.8.
I also have a USB drive formated as Master Boot Record in MS-DOS (FAT) format. The USB has a capacity of 4GB+ and for now only includes a file named 'unattend.xml'  and a folder named 'drivers'. I created this USB drive when advised by a Boot Camp support site, because the Windows 7 install created a blank screen with a small flashing line on the upper-left of the screen.
The I have burned an ISO file of Windows 7 Pro English 32 bit from the Microsoft site (I'm Gold partner).
So I started of by clicking on the Boot Camp Assistant, tried to download the nesecarry Windows drivers, but it refused...  This seemed to be a normal problem which I could ignore (I heard). So I selected 'I have the Max OS X Installation Disc....'  and pressed continue.   I now prepared the size of the Windows environment and when that was finished, I inserted the burned DVD (which works perfectly fine on non-Apple computers).
All this time, the USB drive was in the back of the iMac.
I waited a while and the computer rebooted. A white screen appeared and after a while, the screen went to black, with the flashing little line on the upper-left of the screen...
What is it that I do wrong?   Any help is really appreaciated.

Partitions are not drives
you are just seeing user volumes
your sig showed you still run 10.6, not Lion, no recovery partition (which is hidden)
The update to lion puts the recovery partition between where Mac and Boot Camp use to be and would have been.
I am opposed to upgrading to Lion. Do clean install, even to an external drive.
To me all that is needed is in the manual and here
http://www.apple.com/support/bootcamp

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