OK.
You can just install XP and you can make sure that it ends up being on drive C by first removing the old drive from the PC and making the new drive to be bootable and proceeding to install.
But, if what you want is to use Ghost or Drive Image to replicate XP, which is on the first drive, to the new drive, you can use Partition Magic this way.
1- Backup your data to CDs or DVDs..
2- Backup your data to CDs or DVDs; I am not kidding. You will be sorry if you don't!
3- Install Partition Magic.
4- Create an image of XP from drive C on your old drive and store it somewhere.
5- Restore the image to your new drive.
6- Reboot.
7- Use XP disk management to make the new restored partition active.
8- Edit booi.ini on the partition that you just restored on the new drive.
Make sure that it points to the correct disk and partition (the new restored partition on the new drive). This will be disk number 0 if you plan to have the new drive to be your active drive. That is what I assume you plan to do.
9- Reboot.
10- Run Partition Magic. CAREFUL NOW! You have to have PM perform two activities in one run.
Hide the old XP partition on the old drive. This frees up drive letter C. DO NOT APPLY YET!
Change the drive letter of the new restored partition to C.
Now, apply. It will tell you that it has to reboot to perform the functions you have requested. Choose OK. It will tell you that it can perform drive letter mapping since your requested actions will result in a change in drive letters. Choose NO. Let it go.
You are done.
DON'T FORGET TO BACKUP YOUR DATA.
Edit:
If you now want to access the XP on the old drive, you will need to unhide it. But, before doing that, make sure to go to BIOS and put the new drive ahead of the old drive in the boot priority list.