Yes, a 64bit linux can host a 32 bit windows-xp.  Fedora 6 & Ubuntu are
the primary distro worth trying; unless you have very special needs.

In general the google phrase to search for is "XEN Quick Install".

here are two links I found
checkout the text following this label "Fully-virtualized guests
(HVM/Intel-VT/AMD-V)", to verify your CPU has the right support.

http://fedoraproject.org/wiki/FedoraXenQuickstartFC6#head-fb4ce74ff321c070a5e9004a09538c69d7d95b6b

http://wiki.xensource.com/xenwiki/

James,

On Fri, 2007-05-04 at 00:13 -0400, Timothy Stahlhut wrote:
> To All:
> 
> I am a newbie/beginner Linux user(Third time I decide to try it out). I need
> to know if a virual machine under Linux (64 bit) running on AMD 64 can run
> Windows XP 32 bit in a virual machine?
> 
> If so, what open source virual machine software would you suggest I use?
> 
> Note, I am planning on the computer to be used as a Software Development
> machine; mainly, C++, Java and Mono.
> 
> I am looking at trying out Linux distros of Ubuntu, Mandriva, OpenSuse and
> others.
> 
> Tim S
> 
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