Yes you are. Two things to note: (1) you do NOT need to use Boot Camp, but you can use it - it depends on how you will be using Windows, and (2) if you choose to install Windows via Boot Camp, there are some features of Parallels and Fusion (i.e., "snapshot" in Fusion) which are not available when a virtual machine is run off a Boot Camp partition.
What I did was first install Windows via Boot Camp. Then, I downloaded trial versions of Parallels and Fusion (for free) and installed each of them in turn to see what I preferred, and to work with Boot Camp for awhile. I discovered two things -- first, I preferred Fusion to Parallels (both are essentially the same functionally and it comes down to personal preference for most), and second, I really did not need to have Windows running natively on my Mac for what I was doing -- rebooting was a serious pain in the ****.
So, I bought Fusion, removed my Boot Camp partition (so it and Windows were gone and my Mac was back where it started), then installed Fusion and then re-installed XP from the disc I bought (from Newegg, incidentally), and there you have it.
Works like a charm for me.
It's really not as hard as it seems. I am by no means a tech geek and am definitely an "old guy" by standards around here, and it was easy for me to install and use (both for me and my wife). So simple, in fact, that I wound up installing Fusion and XP on each of my 3 Macs at home.
Good luck!