I've been looking into server virtualization and hyper v and am starting to struggle with it a bit.

Is there a way for my server pc to create virtual pcs that are then deployed onto the existing pcs in the office. 

I was thinking that I could install hyper-v manager to the server and somehow allow that to create a virtual pc whenever someone turned on their pc and have it deployed to it so there's no physical operating system on the pc. Is this possible?

You probably want something like a thin client then.

http://www.microsoft.com/en-us/windows/enterprise/products-and-technologies/virtualization/thinpc.aspx

I drew a mind map of it to explain it better

You're better off in a more appropriate forum than this one. 

This one is specific for Virtual Server 2005, which has been replaced by Hyper-V.  

What you're describing has nothing to do with Virtual Server 2005.  

You could try the Hyper-V forum (Hyper-V: http://social.technet.microsoft.com/Forums/en-US/winserverhyperv/threads), but deploying OSes to physical systems isn't really what Hyper-V is designed for .  When you deploy an OS to hardware, you're not dealing with VMs any longer.

There are a lot of licensing issues you'd need to work though for this also, since you're dealing in client OSes.  

Look more at thin clients, VDI, or remote desktops.