Can two users be on a windows XP machine?

I'll do my best to paint the picture of what I am trying to accomplish.

Trying to have a central place where we can store ghost images. Myself and another guy want to be able to access the machine at the same time. We have Windows XP SP2 installed, and we can NOT upgrade or change to a server version, as we don't have the licensing. We are both using Windows XP machines ourselves.

I have googled this for hours, and have found a couple different workarounds, including replacing the termsrv.dll and making mods in the registry and GP.

We are on a multi-domained network, and it may be that a global GP is overriding the local setting.

I did get it to work, but it was on a virtual machine that was running on a networked machine, but the virtual machine was NOT connected.

I hope this is enough info to get some type of response. If not, let me know what else would be needed.