yes partition magic allows that. it comes with boot magic.
alternatively, u can make two partitions first using the windows xp installation(the part with the blue screen and they ask u to specify partition and size of partition). and then install windows xp once, then install windows xp the second time except that at the setup screen u choose to install in the remaining empty partition. then the next time u boot up, there will be an OS selection option for u(in DOS mode).