Help!!! Windows 7 re-installing...

No problem. I hope it all goes well for you.

Have you considered Dual Booting? Dual Boot Installation with Windows 7 and XP

Once you install XP to its new partition you create, you'll have to mark Win7 Active and run Startup Repair - Run 3 Separate Times to restart Win7, then you can install EasyBCD to add XP to a Dual Boot menu. This is an easier method than adding Win7 from XP although the steps to do so are in the tutorial. You'll also only need to delete XP when ready since Win7 will hold the boot files.

You may need to provide SATA drivers for more modern hardware if XP doesn't have them, but you'd have to do that anyway if you unnecessarily overwrite Win7 to add the older XPiring OS: SATA Drivers - Load in Windows XP Setup on Dual Boot

2gb RAM is also on the low end for 64 bit, so if you want to reinstall Win7 to try 32 bit we can help you do that as well: Reinstalling Windows 7. WMware might be a better option then.