Install 2nd licensed copy of Windows XP Pro on dual-boot system

I have a dual-boot system, Windows 98SE on drive C: and Windows XP Pro on
drive D:. I want to install Windows XP Pro from scratch, in conjunction
with studying for MCSE Exam 70-210 on Windows XP Pro. My system works OK,
but the motherboard is not on the Windows XP HCL.

I have three options as I see them:

1. Buy a new system (motherboard, drives, video, the whole nine yards) and
use this for my practice system. Pretty expensive.

2. Backup the Windows 98 SE drive (C, remove the Windows 98 SE, and
install a 2nd licensed copy of Windows XP Pro on there. Doable, but how do
I do it on a dual-boot system?

3. Backup the Windows XP Pro drive (D, remove everything, and do the
install as stated in the exam study materials. This would be a lot of work,
because all my apps would have to be reinstalled, files restored, etc.

I am leaning towards the first option because I think I will have a better
system in the long run if I make sure I start with a totally HCL-compatible
system.

Any advice, TIA.

Karl