Lab PXE boot setup

I need help on installing a lab environment with a close network to use PXE boot on reimaging PCs.

This is what I have so far:

1. A 2008 server with DHCP server, LANDesk 9.51 also installed on the same server.

2. A VM Win7 machine as PXE rep

3. A 24 port Switch

Both VM and everything that connected to the switch receive IP as part of the assign scope and communicate with the core, but does not pick up PXE rep. I have tried combination with option 60 and 43 on/off but still get PXE-053 error.

Any help would be appreciated!