In ConfigMgr 2007 R2 there can be created Task Sequence Media. This is extremely useful when PXE boot is not available, or not allowed, and an image must be deployed. Default there will be jobs for Stand-alone media (used for offline devices), Bootable media (used for deployment) & Capture media (used for capture a reference machine). With ConfigMgr R3 there is even more functionality available in the Task Sequence Media wizard. Then there will be a job added for Prestaged Media (used for re-deployment).
In this blog the Task Sequence Bootable Media will be explained. Choose to create Bootable media, and apply it to USB or CD/DVD. Also make sure the Task Sequence used for OSD is advertised on the collection used for deployment. For a new device use "All Unknown Computers", for known devices use a deployment collection (for example). Then start the device with Bootable media. When a password is set for security reasons, this must be filled-in first.
When multiple Task Sequences are advertised on the collection, all will be displayed. Choose which OS to install, and finish the Bootable media used for OSD. The Bootable media will then copy the WinPE boot image to the local drive. After that the USB device or CD/DVD used for Bootable media must be removed.
After rebooting the Task Sequence will run the same as using PXE boot. This because the WinPE boot image and Task Sequence are stored on the local drive now. Other packages and OS image which are used in the Task Sequence will be accessed directly at the Distribution Point.
This way OSD is possible without using PXE boot functionality!
OSD = Operating System Deployment
WinPE = Windows Preinstallation Environment