Yes, the "Create image" task detects automatically the filesystem of the source volume/partition in order to run the corresponding imaging tool (hdiutil, ntfsclone, etc...).

We don't support FAT volumes, NTFS only. So make sure your XP partition is NTFS formatted (you can convert your filesystem from FAT to NTFS with the command: convert <drive letter>: /fs:ntfs) before imaging it.