Personal preferences should not be flamed, but:
this is what I do
I have both Linux and WinXP (I'll get rid of it soon I hope).
WinXP was installed first, Linux (with LILO in MBR was installed second.)
All that I did was to add a record about the WinXP partition to lilo.conf
To anticipate the question what will happen if in such a situation WinXP would be reinstalled (because it will rewrite the MBR) I'll say that the only thing one must do is to boot from a live CD (I still use Slackware 9.1 and the second CD boots Linux) and to run lilo one more time with proper arguments.
I'm not a fan of the NTFS filesystem, because retrieving data from a fucked up NTFS parttion is not the most pleasant thing to do.
my problem with the above steps is that after installing linux the system prompts me to reboot. after rebooting, of course, i'll be looking at the windows logon unless my linux install cd's are still in the drive.
personally, i used bootpart to dual boot between windows and linux (and other oses) using ntldr. then i made all my editing on windows.