Installing 2k8 SE 32bit on an IBM eSeries 335 with no DVD drive.
Used
COPYPE.CMD x86 c:\temp\x86_PE
OSCDIMG -bc:\temp\x86_pe\etfsboot.com -n -o c:\temp\x86_pe\iso c:\temp\x86_pe.iso
in WAIK on a Vista box to create the WinPE iso. Burned it to disk, boot off it on the eSeries 335 and it loaded fine. Did net use to map to the network drive that has the Server 2008 folder and ran setup.exe. Ran into a bit of a problem in that it didn't want to allow me to manage the HD at all there, so I had to go back to WinPE and run diskpart to get the 120 gig raid 1 array set up. Used the entire space as a primary partition in NTFS.
Went back to setup and ran it again, this time I got to Windows telling me it was copying files. Then, it errors out and says
Windows Setup could not reinitialize the deployment engine. To install Windows, restart the installation.
I tried that, no luck. Restarted the entire machine, same thing. Anyone have any ideas?
*Note: One curiosity that I really don't know if it will apply at all, is that during the product key portion (first step of install) it would only accept the one labeled as for virt machines, not physical ones.
bit more work initially (a few hours) but you'll have a working build within a day and wont have to worry about stuff like that!