If you're just going to be using it for normal tasks, 2000 Professional will be best. You don't need one of the 2000 Server versions unless you are going to be...guess what?...serving something (web pages, ftp, etc).
If the system listed in your profile is the one you will be installing this on, then you should be able to run XP very well on it. If you have a different test system, you will need to tell us what the specs of it are, so some of the people here who have worked with XP more than I have can advise you as to how you can expect XP to run on it.