Linux users will love this - XP does not recognize SATA drives. You have to enter BIOS and change the SATA setting to IDE. (Used to be routine for linux installs, but notice that your linpus is running on full SATA?) It is possible to integrate the SATA drivers into the install CD - you need the drivers, and the .net framework, and a spare computer. If you are put off by bash, don't even look.
Now you can install... but wait: after installing, many people find they need to install drivers for (wait for it) audio, video, and wifi. (Download from Acer.) But you can play mp3s (you just can't hear them)...
I'd be interested to know if the modem and ethernet work out of the box or if you need to download drivers for these too.
Next you have to install the updates - but wait: XP is legacy now. I believe SP3 is the "best" you'll do.
And then, you have to install all the software which will make it functional. Browser (I mean one that works), PIM (I mean one that is not vendor-locked), an Office suite, firewall, antivirus, etc etc etc.
As an experiment, I decided to see if I could bring an XP box to the functionality of a default Ubuntu install... couldn't be done with all free software, so I settled for freeware too. I finally managed most of it - and the boot now takes a bit over two minutes. The ubuntu boot was 30 seconds - on a slow day.
By comparison - the default Hardy Heron (and similarly recent distro) install enables everything except suspend to ram, and the modem. Post install does the madwifi drivers, and acer-acpi (for the buttons). And you get full compiz-fusion goodness.
So - why anyone wants to install XP...