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Install Windows XP on Dell Laptop with Windows 7 for dual boot

I want to install Windows XP in a separate partition for a dual boot configuration onto a Dell Laptop with Windows 7 preinstalled. Other posts suggest that to do this I must restore the Windows 7 boot sector after installing XP. Does anyone know if I can I use the Dell OS re-installation CD/DVD that comes with the machine to do this? I suppose another option is to repartition the drive, install XP, then reinstall Windows 7.  Could I do this with the Dell re-installation CD? Which method is better?    
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Looks like a very complete tutorial and EasyBCD a great tool.  I'll try doing it as recommended. Not quite ready, but will try soon. Thanks for the help.
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@garycase - great advice and I didn't know the downfalls of doing it the way I did. Fortunately, I have time to get 5 more Boot-It NG licenses and do it right.
Thanks,
Vic
Vic -- there's not really anything "wrong" with simply using the Windows boot manager for a simple dual boot setup, such as XP and '7   ==>  there are simply a few things to be aware of when you do it that way.    As long as you're aware of the potential pitfalls, it's fine.   I just like the total isolation you can get with Boot-It that completely eliminates those issues.

Personally, I can't imagine setting up a dual-boot system any other way -- although I did do it for one system a couple months ago so I'd know what folks were talking about r.e. the "extra" 100MB partition Windows 7 creates ... I had previously only installed it under the control of Boot-It and had thus never encountered the issue.    [Note that you don't actually have to use Boot-It to avoid that extra partition -- you simply have to install it to a pre-existing partition and not have any other unallocated space on the disk it can use ... in that case '7 will install to the single partition.]
Gary  - OK - great comment.
I did 20GB each for the OS's and 80GB for data (three partitions on 120 GB HDD's) so there was no unallocated space left.
I think I'm safe on that.

Rather than (continue to) Hijack this Q, I'm going to post a separate one about some interesting peripherals ... watch for it.
Thanks to all of you for your help.  I can't accurately grade the responses yet and won't be ready to implement any solution for a week or so, but you have all provided valuable information.  
Note to BitsBytesandMore:  I want a real dual boot setup for my business in Tech Support.