You bet it is. I used to develop on 2000 box. It was a 400MHz PII with 64MB RAM. It ran quite comfortably. XP, with most services disabled, and stripped of the cruft, didn't run all that well on a 2GHz Athlon, 256MB of RAM. I'd like to see it run on that old PII box.
And before someone says that's due to XP needing a lot more RAM, I'd like to remind you that thrashing kills your performance.
But hey, don't let facts get in the way of your emotional attachment to XP. Just call people fucking idiots, and that'll make it all better,
>>39!