Can you install Microsoft Deployment Toolkit 2010 on a Windows 7 computer and then use this computer to deploy Windows 7 to other computers? Sure! But you need to know an important limitation of this scenario. If you open a command prompt using Administrator credentials on a Windows 7 computer and run the net config server command, you'll see that the maximum logged on users is 20 for Windows 7. What this means is that a Windows 7 computer allows up to 20 incoming Server Message Block (SMB) connections simultaneously and no more.
For small test environments where you'll only be installing Windows 7 on a few computers at any given time, installing MDT 2010 on a Windows 7 workstation can provide you with a fully-functioning and workable deployment point. But for product environments where you may need to install Windows 7 on dozens, hundreds or thousands of computers simultaneously, it clearly makes sense to install MDT 2010 on a Windows Server system instead of a workstation.
Mitch Tulloch is a seven-time recipient of the Microsoft Most Valuable Professional (MVP) award and widely recognized expert on Windows administration, deployment and virtualization. For more tips by Mitch you can follow him on Twitter or friend him on Facebook.