You can actually keep your existing data. It's a little bit complicated, but here are the steps:
1. Make a special boot disc using BartPE with the DriveImageXML plugin. You will need your Windows CD for this. Basically it rips out the guts of your Windows CD to make a bare-bones "Live" Windows disc for running special applications such as DriveImageXML. Be sure to add the plugin before making the new CD:
http://www.nu2.nu/pebuilder/
http://www.runtime.org/peb.htm
2. With a backup hard drive connected to your Mac, boot into the BartPE CD you created. Once it boots, go into programs and find the DriveImageXML plugin. You will want to create a full backup (clone) of the XP partition. Point the backup to your spare hard drive.
3. Once the backup is completed, boot into OS X and remove the Boot Camp partition. Then, create a new partition from scratch. It must be equal to or larger than the old partition.
4. Boot into the new partition using your Windows CD. Format the partition, but eject the disc (or turn off the computer) when it starts copying the Windows files over. You only need the Windows CD to format the partition for you using NTFS.
4. Boot into the BartPE again with the spare hard drive connected. Choose to Restore your backup to the freshly formatted partition from the spare hard drive. When you're done, eject and boot into the Windows side of Boot Camp. Everything should work fine.
Please, please, please backup your data before doing this. I make no guarantees. It's been about a year since I did this last and I'm not sure if I got it exactly right. Also, I can't remember if I used a Firewire or USB external drive as the spare. Good luck and let me know how it turns out!