he has tons of RAM, either 512M or 1024M, shouldn't be a problem. He is getting a Geforce 64M AGP video card soon. But I guess the one that is emulated is not that good, eh? Won't run Everquest, will it?
Does XP need to be installed in its own partition, or like NT/2000, can it be installed on the old OS drive and then dual boot to the old OS? If so, then this might work for him.
I'm still looking for the OS/2 and Linux solutions running Everquest via ODIN, WINE, WINEX, etc.