it does, but the problem is fourfold:
in the spirit of not supporting EOL linux releases, shouldn't xp community support be halted.
if it's an xp "livecd" it's not official installation media
if you're trying to install XP from within grub, you're asking for problems with MBR overwrites
if you're trying to boot XP to get recovery console for some reason, there are other more elegant solutions.