Yes. There is a setup_deployment newsgroup that covers this, but it is a
standard installation. Setup will ask if you want to upgrade your old OS
or install it on a new partition. If you choose the latter, it will
setup multi-booting.
XP will be on the D: drive and you must keep your C: drive forever
after. If you want to be able to remove your C drive in future, you need
a third party solution to manage your booting or you can use the poor
man's multi-boot:
Remove your old drive cable and boot the XP CD and install XP normally
on your other hard drive. Reattach your old drive cable. Select your OS
to boot by changing the boot device in your BIOS. Note that if you
format XP in NTFS (recommended) win9x will not be able to read the XP
disk. This is a good thing. XP can read FAT32 9x partitions.
If you want to upgrade your poor man setup, then go to
www.bootitng.com
and get BootIt NG. It will install itself on a small partition and
manage your multi-booting, but you still need to follow the above
procedure to assure that XP gets installed on C:.
More advice and support in the above-mentioned newsgroup.