Indeed, and even better, VMWare Server is a free (as in beer) download. It has a couple of shortcomings. For instance I believe it doesn't have the ability to setup shared folders between the host and client OS. Small price to pay for free though IMO.
VMWare Player doesn't allow you to create virtual machines so he would have to use one that was already made by another app like VMWare Server anyway, or download Appliances from VMWare but I'm pretty sure XP isn't an option as a download
thegrifman is right, VMware Server is the way to go on a Windows platform (or Linux). Free and fully-featured. Don't bother with Workstation, Player, or GSX at this point.