Hi Guys,

Is it possible to setup a dedicated installation server? THe logic is booting the PC using the network. After that, they can choose which OS they want to install on their PC. In this way, I will not have to put CDROM in every PC just to install the OS. Hope someone knows the answer.

Do you mean something like:
http://sourceforge.net/projects/systemimager/
http://www.howtoforge.com/howto_linux_systemimager

I've used systemimager to do complete installs from scratch in 5-10 mins.
( will flood your network ... nice to watch if you like pretty lights
Each image was customised to the hardware on the target,
and things like the ssh key were regenerated on first boot.

A lot of experimentation was involved.
I can not provide any quick answers for you about systemimager.
Read, experiment, read, experiment, rip hair out, experiment again ...

This is great..I think I'll have to experiment on this in the future. But I want to use the network to boot. Is there a way to do this?

I'm not sure I understand your question,
but I'll answer it this way:
- make a systemimager boot cd for each type of hardware setup you use
- configure your DNS server to set certain ranges for certain machines
- configure the systemimager server to serve a different image depending on the client's IP

ie. each machine boots from a CD, and installs from the server. A reboot does final config.
(I had to modify the systemimager server I built, and added a couple of minor fixes to the golden client for this to be a painless operation)

I would imagine that setting up a tftp server (or whichever method you choose) for netbooting
would be a relatively simple matter once this is all done.
I've done this before, but never combined it with an installer, so YMMV.