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2006 iMac C2D with Lion, can I install XP in Bootcamp? Which version of Bootcamp do I need?

Yes -- there is only one version of Bootcamp, and it's located in your Applications/System Utilities folder.

You'll need to run "Bootcamp Assistant" and create a partition for XP. Then, you can install it.

Be sure to either download the Bootcamp drivers or insert the disc that came with your computer to get the proper drivers on the XP side.
 
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