As long as you don't want to boot to XP, that should work.
However, if you can you still boot up with the XP computer, I think you'd be better off to put your Win2K drive in the XP computer as a slave in order to transfer your data.
Here is a thread with links to complete instructions for reinstalling XP:
http://www.daniweb.com/techtalkforums/thread6632.html
(If I remember correctly, I believe it even has tips on backing up)
dlh6213
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