It may work but it's not supported. See the installation guide:
http://www.cisco.com/univercd/cc/td/doc/product/rtrmgmt/cw2000/cw2000_b/lms/lmsmar03/lms22qn.htm#10157
which notes that Windows 2000 Professional, Server, or Advanced server are the only Windows OS variants supported for the LMS 2.2 server platform. This will not be changing with respect to XP for the upcoming new releases either - Windows Server 2003 will be added but not Windows XP (as a server platform).
Once you get the May 03 base loaded, be sure to load Incremental Device Update (IDU) 5 (prerequisite for Update 1), Update 1, and then IDU 9 (the latest), and CiscoView package support updates (PSUs) to bring your system up to curent revision levels.
See:
http://www.cisco.com/univercd/cc/td/doc/product/rtrmgmt/cw2000/cw2000_b/lms/lmsmar03/lmsup1.htm
for details on Update 1.