I have a spare PC running Windows XP. I would like to replace
XP with Linux. Should I remove XP first? My PC has a 60.gig hard drive with 1.gig of ram.

Usually, whatever Linux distro you choose will give you the option to wipe the whole drive and make new partitions during installation.

Mike,
usually the above will work. If it has been previously used by a corporation if might have some strange firmware on it that stops you putting another o/s on it easily. Also check hardware compatibility with a live version of the distro of your choice before committing yourself.

Fred.

That depends on whether you want to be able to use XP!!

You can install Linux on a separate partition or you can just let the installer take the whole drive.

Do you mean some kind of custom BIOS? If I am not mistaken, the BIOS just hands control to the code in the boot sector. How could the BIOS control what happens next?
If there's something "special" on the hard drive, then just wipe the drive and make new partitons for Linux.

Since you want to replace XP with Linux, the full story is:
a)Get a LiveCD of whichever Linux distro you want to use (free as a download, or purchase from vendors you can find on Distrowatch.com)
b)Run the LiveCD, don't install yet - that way you can see how well your computer handles the graphics the distro uses (sometimes an issue)
c)If it performs to your satisfaction, doubleclick the Install icon on the LiveCD desktop and answer the questions. When it comes to how you want to install, choose "Use the whole harddrive", or however it is phrased.
d)The installer will do the rest.

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Bear in mind that running from a LiveCD (especially on an older PC with less RAM) is often much slower than a hard drive install since disk access is alower and thing have to be cached more aggressively in RAM. It's still a very good idea for compatibility testing, though.

Post the specs of this computer and we can better guess a choice.

Some old ones can run a virtual machine so you can test linux easily and safe and almost 100% chance all hardware will work.

Some old computers can run a usb or even live cd really well.

Some old computers are not very good choices to try linux on.