Leave AppleTalk to self configure and use DHCP for TCP/IP and leave it at that.
Modern PC's can boot using PXE, Unix boxes can boot using bootp. But with PC's just leave that for the installation, unless running some OS designed to be diskless.
Windows is not designed to run diskless.
System 7 won't.
System 6 can run from a floppy, or in the case of some, boot from System 6 image held in ROM.