I didnt understand the problem well , are you trying to boot from win 2000 cd and install over you exisiting winxp installation I think in that case you must install win2000 in your current winxp folder for example: winxp is installed in C:\WINNT(this is how I have it) you install it there if it's in C:\WINDOWS same procedure but for this folder. but I f you try to run the installation from win xp
it will not allow you. but to be honest I have always installed winxp on systems for my customers
I never tried installing 2k over winxp just because I never had the need to, but I know that If the setup is engaged from win xp itself it will not allow you, so boot from the 2k cd and install over winxp folder and it should work