I have been fighting with this for some time now and I can tell you what I have found so far, its not a pretty picture. As others have said running XP in a virtual machine is not going to help you. XP Mode running under Win7 is not going to support anything even approaching high end graphics..the performance just isn't there, it appears to me at least to just be a method of running older non-game software under Win7 so people don't have to buy newer updated versions of software they already own. VmWare is better but installing it is not going to be any easier than just dual booting XP and as you plan on partitioning your drives anyway, you may as well set your system up as a dual boot. Problem no one has mentioned is XP does not have drivers for SATA drives. Therefore you are going to have to find and install SATA drivers during the install of XP or it won't even see your HD's. I would suggest as you are building the system yourself, installing a floppy, it will make installing the drivers easier, otherwise you have to create a custom XP installation disc with the drivers on it, which is more complicated than it sounds. In my case I just bought a used older computer that doesn't have SATA drives and already had XP on it to begin with, but what you want is possible its just a little harder than you might have thought. Also if you decide to go with a dual-boot system, install XP first, it will save you some additional problems with XP overwriting Win7 boot files if you install Win7 first.
SATA Drives may work with XP If not try to Disbale the Native SATA In your BIOS
Josh
No need to play with BIOS.
First check for all the Win XP drivers for your hardware on the 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.
http://www.sevenforums.com/tutorials/66010-sata-drivers-load-windows-xp-setup-dual-boot.html
OR
http://www.sevenforums.com/tutorials/72185-sata-drivers-slipstream-into-windows-xp-cd.html
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ME/XP/Vista/Win7
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