Also, I would prefer to create it on a flash drive but how do I tell my laptop to boot from it?
You would have to go into the bios and check to see if there is a option to boot to a external usb in the boot sequence. If so put it in the second boot device and move the hd to the third spot. Remember to save before you exit.
I only suggest this to verify if it is the cd disk Toshiba sent you or if it is the system causing the issue. With the ISO from Digital we can then install any needed drivers from the drivers disk Toshiba sent you hopefully in the recovery disks.