I would strongly suggest that you store the OS for the xenservers on the physical machines.
While I'm sure a netboot would be possible consider that you're adding a level of complexity that's simply not needed.
The on-server storage to boot the OS isn't particularly large.
For example with Citrix XenServer the whole thing fits in under 16Gb, which is well within the realms of running the OS on a USB key.
Indeed in terms of hardware the current (and I believe previous) generations of HP DL servers have a USB port (and an SD card slot!) presented inside the chassis on the motherboard for exactly this situation.
So yes, what you want to do is feasible/possible, but consider whether this is the easiest to maintain going forward.
If you can't find a lot of documentation on how to do something it generally means not a lot of people are doing it.
If not a lot of people are doing it, then they aren't doing it for a reason
Good luck and keep us up to date with how you proceed.