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What partition size should I leave XP in?
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How big is your HDD? I would have XP on atleast a 10-15GB partition which gives it room for updates etc.
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Also when I copy everything else from the existing partition to the new one is it really that simple?
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No. If you are moving programs, They will probably not work until you fix up shortcuts to the programs. And maybe some programs might not run from a different drive letter due to the registry entries (Just need to reinstall those programs).