*Resize your nfts partition with Partition Magic.
Install Linux on your free space.
*Some distro's like Mandrake do this for you.
Keep in mind you could run in trouble using a 2.6 kernel distro.
The easiest way whould be Mandrake 9.2.
It will ask you if you want to keep Windows and resize it's partition for you.
EDIT: Oeps, if you don't want to keep XP, any installation will work