WDS services unable to start

The WDS services is unable to start and caused OSD failure. This might caused by the configmgr PXE service point. Follow the guide below to remove and re-add the PXE service point might fix the problem.

*Before begin, please make sure that there is no package binding with the SMSPXEIMAGE$  (such as Boot Images).

1. Delete the configmgr PXE service point. Check the PXESetup.log and make sure it uninstalls successfully.
2. Delete the WDS role and reboot the machine.
3. Once rebooted, re-install the WDS role. Reboot the machine after the installation finished. DO NOT CONFIGURE ANYTHING ON THE WDS!
4. Once the machine restarted, add the configmgr PXE service point in the ConfigMgr console. Check the PXESetup.log and make sure that the installation successful. 
5. Remember to re-add the Boot Images to SMSPXEIMAGE$ Distribution Point that you had removed earlier.

You may want to have a look on reference below,
http://blogs.technet.com/smsandmom/archive/2008/09/17/configmgr-2007-troubleshooting-pxe-service-point-issues-and-wds-service-not-starting.aspx