You don't want to CREATE an image (that would be creating an ISO file,
which is not what you want to do), and you do not want to burn the .ISO
file to the DVD, which would simply give you a DVD with the .ISO file on
it. Rather, you want to burn [restore] a DVD FROM an image. Use the
disc copy function, but specify the .ISO image as the source. All other
questions as to format (e.g. the title of your post) then become
irrelevant, since the image (the .ISO file that you downloaded from
Microsoft) implicitly specifies EVERYTHING.