If you have an existing machine running a previous version of Windows, stick the XP CD into your drive, When the menu comes up, select either "Perform Additional Tasks" then / or Check System Compatibility (I haven't looked at the exact wording recently)
A little program will run and check all of your applications that are installed and tell you if they do / don't work under XP.
As far as part II of your question goes, I'm not sure as to what you're trying to do...If you want to install XP over the network, you are going to have a lot of issues unless you are a System Administrator and can set up RIS (Remote Installation Services) which is free and built into Windows 2000 Server. This requires you to have a copy of the CD at hand anyway.
Your best bet:
Copy the XP Source files off the other computer and onto a CD.
If you want to install XP Professional go to: http://www.microsoft.com/downloads/release.asp?releaseid=42819
and download the "Boot disk creator" you'll need six blank floppy disks and you need to boot your computer off them, then you put the CD in.
If you want to install XP Home go to:
http://www.microsoft.com/downloads/release.asp?ReleaseID=42818&area=search&ordinal=1
Hope this helps
The Young One