Two points to be aware of:
1) it's XP, it's extremely vulnerable having not had any updates for over 3 years, so should not be connected to the internet.
2) using anything other than Windows XP Mode (an XP VM), you will need to have a fully licensed copy of XP to install into the VM you create. Windows XP Mode is only available with Win 7 Pro, Ultimate & Enterprise, so not licensed for Home editions.
SD