>what other ways can i install this distro and is mounting it with alcohol a viable option
No. You have to use physical disk.

>i cant burn the os to the dvd because
disk is invalid or create partition for it because diskpart or diskmanagement.msc wont work
You do sth wrong. You just have to burn iso image. Sometimes coplex soft like nero confuses users. Try sth simple like this one.:
http://www.freeisoburner.com/

All options are explained here:
http://puppylinux.org/wikka/CreateLiveCDorDVD (liveCD mode)
http://puppylinux.org/wikka/HowToUsePuppy (Installation)