I'm also running into this issue.
I just recently upgraded a Server 2003 SCCM primary site to Server 2008 and the OSD functionality has stopped working.
When I PXE boot I receive the following:
Code Snippet
TFTP.
PXE-T04: Access Violation
PXE-E36: Error received from TFTP Server.
PXE-M0F: Exiting Intel Boot Agent.
If I use a Boot disk to try and connect I receive the following:
Code Snippet
Failed to Run Task Sequence
An error occurred while retrieving policy for this computer
(0x80004005) For more information...etc., etc.
I have uninstalled the SCCM PXE module, then uninstalled WDS, rebooted reinstalled WDS, configured it, verified that it works, installed the SCCM PXE role, and moved the boot images to the PXEDistribution point.
What I have found is this:
When WDS is installed but not SCCM PXE, then my computer connects to WDS fine, but has no boot image to use.
When PXE role is installed but boot images are not pushed to the dist point, then it complains that there is no boot image.
When I push the boot images out, THEN it gets the Access Violation errors.
I thought it was an ACL issue, so I checked the permissions on the foler. WDS creates a share called RemoteInstall and the SCCM PXE role creates ashare in that directore called SMSPXEBOOT$. When I tried to open that folder I was told that I didn't have permission (I was signed on as a Domain Admin) so I played with the permissions and finally gave the "everyone" group "Read/Execute" permissions from the RemoteInstall directory down. That still had no effect.
Anyone have any other ideas?