How can I "dual-boot" both Windows XP and Windows 7 from a partitioned hard drive?

How can I "dual-boot" both Windows XP and Windows 7 from a partitioned hard drive? I have a 750 GB hard drive that is partitioned into C and D drives. I am running XP Professional. I will be installing Windows 7. Can I install different operating systems on different drives? XP-c and Windows 7 on d?....What is dual booting?
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Guest [Entry]

You can safely install Windows 7 on D:\ and have Windows XP on C:. Windows 7 will take care of booting into any of the 2 operating systems. The Windows 7 bootloader will recognize XP and will give you an option to boot into either XP or Windows 7 (that's what dual booting is).