Yes, but you will need to "take ownership" of the files.
See MS article http://support.microsoft.com/?kbid=308421

There should be no problem doing this, HOWEVER, if you have used the
EFS encryption facility special precautions need to be taken.

These links may be of use :-

How to take ownership of a file or folder in Windows XP
http://support.microsoft.com/default.aspx?scid=kb;en-us;308421&sd=tech

Step-by-Step Guide to Migrating Files and Settings
http://www.microsoft.com/technet/prodtechnol/winxppro/deploy/mgrtfset.mspx

Using the Files and Settings Transfer Wizard in Windows XP
http://www.microsoft.com/windowsxp/using/setup/expert/crawford_november12.mspx

The Encrypting File System
http://www.microsoft.com/technet/security/topics/cryptographyetc/efs.mspx

Best practices for the Encrypting File System
http://support.microsoft.com/kb/223316/en-us

Well I set up the raid and is now my main boot disk of G: running XP. But I
still have my old C: drive with my original XP on it but I want to format it
and remove it from this same computer. I booted into "safe mode" and changed
the security permissions on the drive and rebooted. I then went to "Disk
Managment" to see if I could format or fdisk the drive and those options were
not available on that drive (dimmed). How do I wipe out this old drive to use
elsewhere?