Yes, but you need to create room for it first. I suggest using Partition Magic if you have it. I think QTParted will do it, too, but I'm not sure. If you just shrink the windows partition, Libranet will partition the free space.
When you install it, let Libranet handle booting, it will ask you so say yes. It will ask if you want to dual boot with windows, again say yes.