Yes any PC can be Client AND Server.
Sounds like you want a web server on your pc, depending on your setup you have several choices.
If you are running WindowsXP home I can recommend
xampp it installs Apache 2 for windows and is very easy to use.
If you have Windows XP Professional you can use IIS, in Control Panel go to Add/Remove programs and clcik the Windows Components button, choose to install IIS (you may need your XP CD handy as windows will probably ask for the disk)
Either way once you have chosen and installed a web server you will have;
For IIS a directory C:\inetpub\wwwroot
for Apache (depending on instal) something like C:\program Files\xampp\htdocs
Stick your web folder in one of these directories and you should be able to browse it from:
http://localhost/webfoldername
where webfolder name is the name of your folder containing all your web pages. Or if you don;t want to move your web pages, in Administrative Tools on windows (if you went the IIS route) you can use IIS Administrative Console to create a Virtual Directory and point that at your folder containing your pages.