Not exactly allowed by the EULA, but you would run setup and point it to the
location of the second hard drive. It will activate over the internet.
If you are doing this for backup, it is a bad move. If the primary HD fails,
your second drive with XP would not boot and would have the registry
settings point to the wrong location if connected as the primary master. The
boot files would be located on the old drive.
You would need to use a boot manager to get around the above problem.
Imaging software would also be a good alternative allowing you to create a
backup image to CD or DVD.
Pull outs would be another way to install XP as the Primary Master for
backup.
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