Optimal hard drive setup?

[Claisen]

Right now I have XP installed on two IDE harddrives but would like to add OSX for dual-booting purposes. I have some options for harddrive setup, and I was wondering what would work best.

 

I could:

- repartition space on my C or D drives for an OSX install

- add a third harddrive (would have to be SATA) and install OSX on it

- backup everything and wipe to install osx first then xp

 

Option 3 is the most painfull... that would be a {censored}load of backing up to do. Does the SATA option work? I haven't followed the install process in a few weeks and so I'm definitely not up to speed with what the best route would be. Let me know your thoughts. Thanks!