It sure can - and Internet Information Server is included
with XP Professional. The only roadblock you're liable
to run into is that XP Pro is limited to ten simultaneous
incoming connections.
If you go to Control Panel --> Add or Remove Programs
you'll see an 'Add or Remove Windows Components' button
on the left side of the window. Click that, scroll down
a bit and click the box that says 'Internet Information
Server'. You'll be prompted for your Windows XP CD most
likely.