Not recommended because there is another way that avoids common issues.
The other way is to just get another drive and install the new OS on the new drive. When you are done, put both drives into the system and select the system you want from the BIOS boot menu.
Later, if you have a problem with the XP system, remove the other drive and do a recovery or repair in the normal way. Otherwise when XP rewrites the loader or boot information. That will cause a problem with the new OS if the new OS is on the same drive.
One 'expert' said in is Blog that it is alright to trash the Windows 7 boot loader with Windows XP. His idea was that it is so easy to fix Windows 7 with the repair disk. Is this not like telling people you don't need a spare tire, just call road service when you have a flat?.
But the OP wants both on the same drive.