Backstory: My system drive died a couple weeks ago without warning. So I went to Microcenter and picked up a new SATAII drive and 2 more gigs of RAM. One of my friends furnished me with a RC of Windows 7 x64 which has a valid license until next year some time when hopefully I can upgrade to the full version.
Reasoning: Windows 7 is awesome, fast, and beautiful. However it is completely useless for music production. I won't go into too much detail, but it is unusable for me so I had to consider other options. I decided that XP had been working fine for that task and dual-booting would allow me to sandbox my music production OS while still doing everything else on Windows 7 (I already use Linux in a VirtualBox for development).
I already had Windows 7 installed by the time I realized it wouldn't work for music production, but I had planned ahead and left a good deal of space unpartitioned. Windows 7's Disk Manager allows you to resize partitions without having to use third party tools if you weren't thinking ahead. I created a new NTFS partition in my free space for XP and gave it a name to distinguish it during the XP setup.
I created a custom nLite build of Windows XP Pro that was semi-automated, I slipstreamed SP3, and integrated my motherboard, gamer audio, pro audio, ethernet, and graphics drivers. I also used an addon for Notepad2 which is a simple editor I'm rather fond of for trivial tasks (I use Komodo Edit and VIM for serious work). I patched some system files and added some custom themes while removing Luna.
Problems: Later I discovered that the driver integration didn't go so well so I'll probably skip it next time and just put the drivers on my install disk for after the OS installation. I also discovered that Google Chrome's installer is messed up and you can't use it standalone. I was glad I hadn't removed IE so I could download it quickly, but next time I'll include Opera or Firefox on my install media. One of the custom themes I included was non-functional, and another one was just plain ugly, I'd remove these if done again. Overall the problems were trivial and I was very happy with the customizations.
After I burned out my nLite'd XP install disk I rebooted and when prompted selected my newly created XP partition and did a full NTFS format for the sake of completeness. I installed XP, rebooted, everything worked great even after the serious tweaking I gave the OS in nLite.
When XP installs it trashes your existing bootloader and doesn't detect 7, so it boots straight to XP without giving you a choice. What needs to be done now is to reinstall the Windows 7 bootloader and then configure it to work with XP also. Here's how:
* Replace "D" with the drive letter of your Windows XP install.
You're done, when you reboot the bootloader will give you the option of booting into Windows 7 or XP. If you want to change the default OS or configure the delay time go to Control Panel/System > Advanced System Settings > Startup and Recovery/Settings.