Yes you can, that's what I did.
DL the file, extract it (creates an extraction folder on its own), create an .iso file from that folder, burn to disk.
Boot off disk, and format your HDD of choice, and away you go. I'm in the process of copying my old data onto my new PC, then gotta reinstall all my programs (I f'in hate that part), but I'm really diggin the new looks of Win7.
Really, the DL versions of Win7 are meant for peeps w/o an optical drive (netbook), but it is still possible to create a bootable copy from the files.