OSD refers to the SMS 2003 Operating System Deployment Feature Pack. It allows the SMS 2003 framework and infrastructure to be used to install and update workstation operating systems. OSD provides mechanisms to capture, customize, and deploy OS images to workstations.
The process itself it pretty straight forward:
1. Create & Burn Image Capture CD
2. Prepare Reference Workstation
3. Capture Image
4. Create Image Package
5. Create Operating System Program
6. Download Installation CD or Create & Burn Operating System Image Installation CD
7. Install Workstation Using Installation CD