It sound like it went into a managed winpe state. How are you pxe booting the machine? Did you pick Managed Winpe or Winpe Menu. Or did you try to schedule the osd task on the machine with the OS running?
"This is pxeboot" is a managed pxeboot selection detected according to the startnet.cmd. To get the pxemenu it needs to be a pxemenu detection and it would then say "This is pxemenu" and launch PxeMenuStart.cmd. billyc is on the right track with this one.