Windows Preinstallation Environment (Windows PE) 2.0 is a minimal Win32 operating system with limited services, built on the Windows Vista kernel. It is used to prepare a computer for Windows installation, to copy disk images from a network file server, and to initiate Windows Setup.

step by step guide for create pe disk

Steps for create windows pe boot disk

Benefits of windows pe disk

http://msdn.microsoft.com/en-us/library/ff794946(v=winembedded.1001).aspx

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