You'd be better putting that Firewire disk on that machine.
Alternatively you could copy the file across first.
like so:
Code:
@echo off
net use x: \\server\isos
cp x:\game.iso c:\temp\game.iso
daemon -mount 0,c:\temp\game.iso
cd \game-dir
game.exe
daemon -umount 0
Redwolf is right though
Its still going to take a long time to transfer all that data to your system.
As to running the server, yes Linux can do that. Use samba, easy to set up.