Yes, your are confused.
Here is the process:
1. Launch BootCamp
2. FOLLOW THE DIRECTIONS that come on screen
3. It will partitions the drive
4. It will then ask for a XP install disk (it should be SP2)
5. It will copy that XP disk, THEN ask for a blank, burnable disk
6. It will burn a NEW INSTALL DISK with all the special drivers you need to run XP on your Mac.
7. FOLLOW the onscreen directions.
8. Enjoy
The moral of the story is FOLLOW DIRECTIONS given to you (on screen).
And don't follow the above directions, as satcomer (usually quite reliable with assistance) has quite scrambled the Bootcamp process. Here's the real scoop, so you don't again have questions about the sequence
1. Launch BootCamp
2. FOLLOW THE DIRECTIONS that come on screen
3. It will NOT copy your XP disk, BUT will ask for a blank, burnable disk
4. It will burn a CD with all the special drivers you need to use XP on your Mac.
5. It will partition the drive, remember your choice of partition size.
6. It will then ask for a XP install disk (it should be SP2)
7. Your Mac will then reboot to the XP installer disk
8. FOLLOW the onscreen directions, and select your prepared partition, which is usually marked C:
9. Enjoy
10. Reread the Read-me files that come with BootCamp, as there are answers about what to do with all the weird windows that appear when you do the driver installs from that CD that BootCamp creates. If you blow the driver installs, you can always do it again until the windows accepts the drivers. I've installed WinXP through Bootcamp 20 or 25 times, and sometimes the drivers need several attempts to completely install, not too unusual, I guess, if you have to use Windows.....
In answer to your original question - Yes, just hold the Option key, and you can choose to boot to any bootable partition.
