Upgrading from Windows Me to XP

[kafka]

I have bought a new computer which came with Vista. My daughter's computer has Windows Me as its operating system. Can I replace her Windows Me O/S with my now surplus XP (OEM) and if so, how do I do it?

[Deerpark]

Is it a real XP install disc (with Microsoft holograms on it) or a OEM restore disc?

[kafka]

It is a real XP installation disc.

[Deerpark]

Then yes, I believe it is possible to install it on your other computer.
Before you do so you should collect XP drivers for the hardware in the computer though.
By the way, how fast is the processor and how much RAM do the computer have installed? The system requirements for XP are higher than ME so XP might end up feeling sluggish if the specs are too low.