iguanakramer,
It would take a book to document all the ways to do this. It is possible to do so however, the USB or parallel port locking device must be present to win.
In simplest terms you would create a boot image file from the boot partition of the CD. A good CD/DVD authoring program will allow you to do this. You would then use this .bif or .ima as the Boot image on you PXE server.
-Fred