How can i dual boot?

Yes, XP will see the other partition and be able to install on it. I'm not sure how you'd boot into the other partition with NTLDR, though. I dual-boot XP and Linux, and I use GRUB (Grand Unified Bootloader), which gives an option screen every time I boot up, but I'm not sure how NTLDR (the Windows bootloader) handles it, if at all.