Why not wipe the HD before you install XP? Who knows what bad or infected code might be on a used HD?
Use this tutorial:
SSD / HDD : Optimize for Windows Reinstallation
If you already have XP on the HD in another partition, then you can use free Partition Wizard CD to wipe the Windows 7 partitions, even Resize XP into that space.
When you are ready to upgrade to Windows 7, boot the DVD then use Drive Tools to Delete and repartition as you wish, format before install.