Answer

1.    Install the new WinPE version 2.1 boot menu option 
       For information on obtaining the latest automation operating systems, see article 22577.

2.    In the PXE Configuration Utility Select the WinPE 1.6 version.
       Click Edit to modify this boot menu option and click edit boot image.

3.    On page 1 in the boot disk creator, In the "Pre-boot Operating System for this Configuration" 
       drop down menu select "Windows PE 2.1".

4.    Click next through the rest of the steps,  then save at the end.

This updates the WinPE 1.6 to WinPE 2.1 without changing the menu item.

**Windows PE 2005 (WinPE 1.6 for use with Deployment Solutions versions 6.5 or 6.8)

**Deployment Solutions versions 6.9 or greater can use WinPE 2.1