Currently, i'm in a delimma whether to install linux bootloader into MBR. Because if i install linux into MBR overwriting windows bootloader, what will happen next time if i need to install sp5 for xp? Will xp sp5 overwrite linux bootloader in MBR? What is the solution for this?

Or should i install linux bootloader on first boot partition? Then modify xp bootloader to include linux, and activate linux bootloader.

Which one will u guys choose?

i think the service packs do overwrite the mbr...

keep your bootloader in the mbr, but have a live cd lying around to run lilo to get it back into the mbr (or grub)

what distro do you use? things like redhat, mandrake, and slack 9.1 have rescue cd's within their install cd's

No afaik it won't overwrite the MBR when you install a service pack, it only gets overwritten when you install/reinstall windows, recover it with the recovery console or do a "fdisk /mbr" with a dos bootdisk. Besides, the actual windows boot loader only gets installed into the partition bootsector, inside the so called "System partition", and the partition with actual system files is the "Boot partition".

I would backup the original mbr first then install grub/lilo into the mbr, but if you're thinking about removing linux its probably easier if you use xp bootloader to load it.

Where did you get SP5 for XP??

XP is only at SP1, Win2k is at SP4