Do not recommend removing it for IE is too integrated in WindowsXP.
But you can disable it:
One way to remove the ability to browse with IE is to use XP's set program
access and defaults utility.
Click on the Start button
Click on set program access and defaults
Select the Custom pull down list
Deselect the enable access to this program checkbox for Internet Explorer
Click ok
The second way is to add a bogus proxy server to IE's Internet Settings.
Follow these steps:
In IE, go to Tools>>Internet Options.
On the Connections tab, click the LAN Settings button.
In the resulting dialog box, select the following check box in the Proxy
Server section: Use a Proxy Server For Your LAN (These Settings Will Not
Apply To Dial-up Or VPN Connections).
Enter 0.0.0.0 in the Address text box.
Enter 80 in the Port text box, and click OK.
If you are in charge of a domain controller for a company