: : Do you need to use a program such as grub to set up the dual boot for red hat and xp or can disk druid do the job?
: grub is a boot loader. Lilo is the other boot loader that is popular in RH. You need one of these for booting linux in general, not just dual boot.
: disk druid is a program to help with disk partitions and doesn't have anything to do with booting.
Here is a link to thread discussing your present situation. It will show you how to use xp's boot-loader to get to Lilo (or Grub).