Most certainly. But there are a number of "tweaks" that you may have to do to the new XP installation to create the contact.
Using TCP/IP? Check the Subnet masks are the same and that the IP addresses are allocated. The default on the new XP machine will be "automatic".
Initially if you're not sharing an Internet connection, it's simplest to use the NetBEUI protocol.
Check the "guest" account on both is enabled. That's in control Panel/Users and Passwords/Users.
See how you get on with that.