It works very well on XP, including up through SP-2.
A few suggestions to improve your experience with PM:
1. Run CHKDSK on all partitions you plan on acting upon with PM. Let
CHKDSK fix all file system errors, before running PM8.
2. Run only one operation at a time, verify it worked as you expected. A
confirmatory CHKDSK is a good idea on all new/changed partitions.
3. If possible, defrag before using PM8. PM8 runs fastest when ity does
not have to move a lot of files. This is most relavent when making a new
partition from an existing one that already contains data.
4. When you install PM8 it will offer to make a recovery floppy set, from
which you can run PM8 without access to XP. Do it ! If anything goes wrong
(never has for me), you might be able to fix it with this floppy set.
5. As with all major disk operations, backup personal files before using
PM8. I have found PM 4 through 8 safe on win95, 98, and XP. However,
things can go wrong. For example, a power failure in the middle of some PM8
operations can be fatal.