If I had Win XP and now installed Windows 7 and have deleted Windows.old (Windows XP) can I resize and put a new partition of Windows XP or does it have to be first in the chain? Will PArtiton Manager allow me to have Windows 7 and then XP or is it the other way?

I have Windows 7 on "C" and XP on "E" ("D" is DVD drive).
After installing XP I had to repair 7 with the installation disk as it would not recognize 7 from XP.

If I had Win XP and now installed Windows 7 and have deleted Windows.old (Windows XP) can I resize and put a new partition of Windows XP or does it have to be first in the chain? Will PArtiton Manager allow me to have Windows 7 and then XP or is it the other way?

It really doesn't matter where XP is located on the drive, as long as it's installed first .
Ideally, you would want your OS's on separate drives.
Having them on the same drive may cause issues and if in the event the drive goes south, you lose both OS's and all data for both.