I have recently successfully dual booted XP and Windows 7 by using the free Easus Partition Manager to create a new partition, and then you just go for it.
I originally used 1 blank drive which was fine for making the new partition, but ran into trouble when I connected up extra drives, webcam, and wireless adapter, so reinstalled Win7 again with everything connected and it worked out perfectly. One confusing thing is that each OS will assign different drive letters to the partitions and hard drives, so you have to keep an eye on that.
It was so easy, I think I'll have a crack at a Linux distro as well on another partition on the same drive.
(Consider putting in some extra RAM and you should notice quite a difference in performance.)
Check out this posthttp://www.bleepingcomputer.com/forums/ind...t&p=1265828
Edited by rowal5555, 30 May 2009 - 10:10 PM.