The Home and Professional editions of Windows XP are nearly identical, the only differences are additional features found in the Professional edition.
Features not included in Windows XP Home Edition:
– corporate management (IntelliMirror, folder redirection, Group Policy settings, Local Policy settings, System Policy settings, Roaming User Profiles, Offline Files and Folders, Software Installation and Maintenance, Remote Installation Services),
– corporate security (Encrypting File System, Stored User Names and Passwords, Computer domain account support, Access Control List Editor, Administrative shares, Security-related Group Policy settings),
– networking (IPSec manual configuration, Client Service for NetWare),
– file system (Automated System Recovery, Dynamic disks),
– user interface (some differences in the default settings for the Quick Launch toolbar and in Start menu options),
– advanced and power-user (Remote Desktop Service, Multiprocessor support, Multilanguage user interface, Start menu option to show administrative tools, Internet Information Services).
Computers running Windows XP Home Edition cannot join corporate domains.
The hardware requirements for installing Windows XP Home Edition and Windows XP Professional are similar but Windows XP Home Edition supports only one CPU and Windows XP Professional supports multi-processor systems (2 or 4 CPUs).

