Actualy that would be an excellent way to go or even run VMWare. Only problem is that Xen will only run XP if you have an AMD with VT support or an intel chip with VT support. I happen to have tried Xen on my main house system ( no its not my core ) it has the Intel 940
chip not to be confused with say a consumer grade 945. Xen worked '''ok''' but not as well as i had hoped. I was not able to boot say a image software like Acronis. This to me was a big problem not being able to backup or restore my systems. So doing any PTV work was almost impossible with Xen. I ended up running vmware workstation and under that system i run a few virtuals such as a misterhouse a perl based home automation system on w2k.
My hope is to be able to write a module to interface misterhouse and linuxmce.
I think the pxe boot idea is probably what i will go with at this point. I do have my wifes box as a wireless node so i will have to first put more holes in the house to get her computer hard wired. She did not like it what i told her this
Anyway thats everyone for your responses i have a plan now.