I want to make my System as Dual Boot Windows XP and Windows 2003 with Single Hard Disk.Can someone validate my approach
1.Install Windows XP on C drive
2.Install Partition Magic and create another partition for Win2003 in NTFS format
3.Install Windows 2003

Any issues are expected in this process...

spot on,or install xp by create partition for xp leave other partition for win03 when done install win03
[only applies when you doing installation on empty disk]

That process would work fine, you could also:

Use your partion softwares boot cd to create the two partitions in advance.

Use the Windows CD to create an instaltion partition leaving the desired space.

The one question I have is why you would want this boot scheme? Windows 2003 is a server operatins system, the only reason I know of to install it would be to run a server. In which case you wouldn't want dual boot because loading into XP would just shut down your server.

You might consider using virtualization. This would allow you to work in both environments at the same time without having to shut down your server. Sun VirtualBox is free, and there's also VMware or microsoft virtual PC.