Yes it will run, but I highly suggest adding more memory. I installed XP on a basic Windows ME (Worst Windows ever!) machine. It was slow as hell until I added more RAM and now it's actually useable.

~Ryan 1999 T-Red SVT Contour 41k Miles #1701 / 2760 B&M, Custom Y-Pipe, Alpine HU, Pioneer 6x8's & 6x9's