What is the difference between Windows XP Home and Professional editions?

The differences are not very big and casual home users will find XP Home Edition sufficient.

Windows XP Professional Edition has the following differences:

Administrative Tools in the Start Menu and Control Panel
Automated System Recovery
Boot Configuration Manager
Group Policy Refresh Utility
Multi-lingual User Interface (MUI) add-on
NTFS Encryption Utilitiy
Offline Files and Folders
Performance Log Manager
Remote Desktop
Scheduled Tasks Console
Security Template Utility
Telnet Administrator

XP professional also provides support for multi-processor systems (several CPUs), Dynamic Disks and Fax.

More Cool Windows XP tips & tricks HERE