Windows Deployment Services (WDS) replaces Remote Installation Services. It’s part of Windows Server 2008 and provides utilities to rapidly, remotely and quickly deploy Windows XP and Windows Vista operating systems over a network without having to be physically there or using physical media to install.

It’s managed in a MMC console window, letting you add and remove servers, configure numerous options including computer naming, DHCP settings, reponse settings (PXE) and adding and removing installation and boot images. It lets you have full control over your image groups, and you can even have an unattended script (in form of Unattend.xml) with each image to provide you with the ability to run an unattended install. You can also manage 32-bit images with 32-bit computers only, likewise with 64-bit software to help prevent mix-matching of processor architectures.

Some of the advantages include: 

• Allows network-based installation of Windows Vista, Windows XP, Windows Server 2003, Windows 2000 and Windows Server 2008
• Deploys Windows Vista to new bare-bones computers with no operating system installed
• Provides an end-to-end solution for deploying Windows operating systems.
• Supports mixed environments, including Windows XP and Windows Server 2003.
• Uses standard Windows Vista setup technologies, including Windows Preinstallation Environment, Windows Imaging, and Image-based setup

The requirements to run Windows Deployment Services include:

• Active Directory directory service: A Windows Deployment Services server must be either a member of an Active Directory domain or a domain controller  for a domain. All domain and forest configurations support Windows Deployment Services.
• Dynamic Host Configuration Protocol (DHCP): You must have a working DHCP server with an active scope on the network because Windows Deployment Services uses PXE which then uses DHCP. The DHCP server does not have to be on the Windows Deployment Services server. 
• Domain Name System (DNS): A working DNS server on the network is required to run Windows Deployment Services. The DNS server doesn’t have to be running on the Windows Deployment Services server though, just on the network.
• Installation media: A DVD, CD, network location or physical media that contains the contents of the DVD is required to install Windows Deployment Services. 
• NTFS File System: The server running Windows Deployment Services requires an NTFS partition for the image store. You cannot create the image store on the partition containing the operating system files - it’ll have to be on a network location attached to the Windows Deployment Server.