Your trying to copy XP, while still running it? Is this for backup purposes, becasue I don't think you are going to be happy with the results if you intend to boot from the new copy.
I bought a new hardrive. I want to put windows on that drive and make it the boot drive. It can be done with Xcopy just need to fogure out the correct options.
I've never tried, but you might also be able to use the manufacturer's cloning utility, if one exists. For example, Maxtor's MaxBlast 4 claims it will make an exact duplicate of your existing drive.