I haven't had problems dual booting between XP and Windows 7 (both 32 bit). As far as I know, if your computer will run 64 bit OS's, you should be able to dual boot between the two just fine. I would say that if you can run 64 bit, it probably comes down to something small.
But whenever I install 7 onto my old Dell that normally runs XP (and Win 2K, actually it's a tri boot), I haven't had problems. But when the startup screen appears, 7 is the first option, then "earlier version of Windows".
As far as your modem goes, as long as you have the install disc for it, you should be able to install it from within Windows 7. Or go to the manufacturer's site and download the driver, and put it on a flash drive. There may be more than one driver for your modem, a Win 2000/XP one, and a Vista one. The Vista one should work, if that's the case.
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