I usually manage to stay behind the camera on TechNet Edge, but Neil showed up in my office the other day with a camera, and wouldn't leave until I showed him how to set up and configure Windows Deployment Services (WDS) on Server 2008. You can see the results here.
I did leave out one minor configuration step that happens automatically when you first configure WDS - if your WDS server is also your DHCP server it needs to be configured to not listen on the DHCP port, and add a DHCP setting that redirects the boot requests to a different port. The WDS console will do this for you automatically when you first start it up. If DHCP runs on a different machine, you just need to add the Scope Option 060 value PXClient.