ANSWERS: 3
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Indeed you can, although I would consider it more the other way round, I think 2000 is still better than XP ;) However, it's a (fairly) painless procedure... You pop the Windows XP CD into your machine and, provided it has boot from cd enabled in the system BIOS, the machine will pretty much install XP as an upgrade on its own. If you choose to upgrade the installation to XP, rather than do a fresh install, you can even keep all your old programmes and documents. However, I wouldn't recommend installing XP Home Edition, if you're going to use XP then shell out the extra cash (or borrow somebody's XP Pro disc) and install that instead - the Pro edition is SO MUCH BETTER than the Home edition. In my opinion, Microsoft should never have marketed the "Home" edition as a Home edition, rather a Lite edition. But there we go. Yes, it is possible. :)
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You will also be able to upgrade Windows 2000 Professional to Windows XP Professional as well, but not to Home Edition. In case it isn't obvious.
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Yes, that's correct. You cannot upgrade Windows 2000 to Windows XP Home Edition.
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