TFTP Server Working, but get PXE error

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I had been trying for the past 2 days to get the PXE service to work, but I am having a difficult time. TFTP is working because I was able to connect to the FTP server and read files with a client, but for some reason, even though I define pxelinux.0 as a file name in the dhcpd.conf file, it still doesn't see it and the file is in the tftp directory. This is how the dhcpd.conf file looks like (Note that anything in Parenthesis is actually not in file and just information to clarify what is what like what ip address is used on what kind of server):

option domain-name "domain.local";
option domain-name-servers 192.168.1.1 (server running dhcp and tftp), 192.168.1.254 (router on network; is it even necessary?);

default-lease-time 600;
max-lease-time 7200;

authoritative;

basic subnet declaration

subnet 192.168.1.0 netmask 255.255.255.0 {
range 192.168.1.3 192.168.1.25;
filename "pxelinux.0";
next-server 192.168.1.1; #server that is hosting DHCP and TFTP
option subnet-mask 255.255.255.0
option broadcast-address 192.168.1.255;
option routers 192.168.1.254;
}

and then the xinetd.d file looks like this:

service tftp
{
disable = no
socket_type = dgram
protocol = udp
wait = yes
user = root
server = /usr/sbin/in.tftpd
server_args = -s /var/lib/tftpboot
per_source = 11
cps = 100 2
flags = IPv4
}

I never setup an TFTP server before (speaking of which, I am still a Red Hat newbie) so I utilized as much online sources as I could and I finally give up. The pxelinux.0 file is in /var/lib/tftpboot and i did create a pxelinux.cfg folder as well as creating the "default" file in pxelinux.cfg. I am really stuck. Any help is appreciated.

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