I have managed to get SME to install from a USB stick. I am sure there is a much more elegant way to achieve it but this worked.
Of course you will have to run the gamut of USB boot issues as not every motherboard will support booting that way.
Here's what I have done.
You will need a USB stick of at least 2GB capacity. and a Windows or Linux PC for USB stick preparation.
1. Download SME ISO and also download the UNetbootin utility.
http://unetbootin.sourceforge.net/2. Format your USB stick
3. Run the UNetbootin utility and select the disk image option and point it to the SME ISO image. set the type as USB drive and set the appropriate USB drive as your target.
4. Once the USB image creation is complete then also copy the SME ISO image to the USB stick
5. Configure the Bios for USB boot on your target machine for SME install
6. Boot from the USB stick and follow the prompts like for a CD install of SME
7. At some point the loader will ask for the location of a CD image, select hard disk install and point the installer back to your USB stick.
Worked for me.
I'm sure the installer could be revised and this process could be streamlined rather than having the ISO and all the files on the USB stick. But hey it works.