You may already have discovered how Windows PE 2.0 can be used as a recovery tool, generally by creating a secondary partition and storing the recovery image there. But there are a number of advantages to booting Windows PE 2.0 from the same partition as Windows. Read February’s column to learn how to dual-boot Windows XP and Windows PE 2.0 from the same partition and explore the problems this can solve. 

If you need more information on Windows PE-- or a good review -- check out two of Wes Miller's feature articles that you'll find very helpful:  Getting Started with Windows PE and Getting Ready for Windows PE 2.0.

Source:? Microsoft

Windows XP, Desktop, Windows PE 2.0, Dual Booting