Restoring an XP image to my new Windows 7 system

I should have given you more details about my hardware. I am using a laptop. The old comp is a laptop too. I only have one hard drive, 750 GB, although I have some large external usb hard drives as well.
I think I will try following whs and gregrocker’s suggestions. I will partition my drive, and hopefully, I can restore the old system to set up a dual boot option with Easy BCD. If that doesn’t work, I can always, as whs suggested, boot from the BIOS. If none of these suggestions work, then I may just try running the programs in XP mode. In fact, that may be the easiest solution, although it would be really nice to have access to the old system on the new computer. I have the hard drive space for it!
I’ll let y’all know how I make it out. In the meantime, if anyone else has any additional insights, please do make suggestions!
Cheers

First check for all the Win XP drivers for your hardware on the OEM manufacturer's web site.

If your Win XP CD, does not support your Sata Controller, you will need to load drivers to uses at F6.
Load Sata Controller drivers with a floppy disk is the best way.
SATA Drivers - Load in Windows XP Setup on Dual Boot
OR
SATA Drivers - Slipstream into Windows XP CD

Dual Boot Installation with Windows 7 and XP

A bit more reading.
BCDEDIT - How to Use
System Restore Points - Stop XP Dual Boot Delete - Vista Forums

gvtbay said:

... I can always, as whs suggested, boot from the BIOS. If none of these suggestions work, then I may just try running the programs in XP mode.

You can only BIOS boot to a separate HDD. The BIOS points to a HDD's MBR and there is only one per HDD.
Old 16 bit apps which ran under XP may not run under XP mode.