A couple of our servers, and even more laptops, are coming with no optical drives installed. This can be a problem when it comes to installing an operating system. I use the excellent Windows Deployment Services role on Windows Server (2000-20012 R2) to accomplish this. It works very well in deploying Windows Server and Windows 7 over the network via a pre-execution environment (PXE) and can even deploy Windows XP images if the need arises (see my “how to” article here). The one limitation it has is that you cannot install Linux distros. This is a problem because you are only allowed one PXE server on the local area network (LAN), so you would have to choose either a Linux PXE server or a Windows one.
Fortunately, I found a solution that lets both work together to give you every kind of boot solution you could dream of 🙂