Would anyone know if its possible to set up a pxe server on my Linode, and have my local computers on my home network boot up using pxe. The reason I ask is. I use a imaging program called fog, and it uses pxe booting for imaging, and I also have different Linux ISO programs that I can pxe boot for computer troubleshooting.

I don't see why not. The local DHCP server issues an IP address to the PXE client, and also gives it the IP address of the PXE server, so it should work as long as there is IP connectivity between the two.

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theoretically it should work, but how would the local machines get their dhcp ip address from the Linode. Considering I have a router in house. I know need to turn off dhcp on the router so,how do I point my local machines to the Linode.

You'd still need a DHCP server locally, and it would have to know about the PXE situation. Alternatively, you could do some crazy magic to extend your LAN to your Linode and put the DHCP server there, but if you have the network equipment to do that, it can probably handle doing the DHCP thing itself.

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BTW: If you're looking for an off-the-shelf router that can do crazy stuff without needing to void warranties or spend hundreds of dollars, the Mikrotik RB750GL can probably do it.