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.
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.
Windows PE is not designed to be the primary operating system on a computer, but is instead used as a standalone preinstallation environment and as an integral component of other setup and recovery technologies, such as Setup for windows-vista, Windows Deployment Services (Windows DS), the Systems Management Server (SMS) Operating System (OS) Deployment Feature Pack, and the Windows Recovery Environment (Windows RE).
You can find more information on windows-pe on Microsoft TechNet | Windows PE Technical Reference