http://support.microsoft.com/kb/919529
QUOTE
SYMPTOMS
After you install an earlier version of the Windows operating system on a Microsoft Windows Vista-based computer in a dual-boot configuration, you may experience one of the following issues:
• If you install an earlier version of the Windows operating system on a Windows Vista-based computer, Windows Vista no longer starts. In this case, only the earlier version of the Windows operating system starts.
• If you install an additional instance of Microsoft Windows XP on a computer where Windows XP and Windows Vista are already installed in a dual-boot configuration, you may receive the following error message:
Disk read error has occurred.
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CAUSE
These issues occur because earlier versions of the Windows operating system are incompatible with the new Windows Vista startup method. Windows Vista uses a new Boot Configuration Database (BCD) store. This store contains a boot menu and all the information about operating systems that are installed on the computer. Therefore, a Boot.ini file that is from an earlier version of the Windows operating system cannot be used to start Windows Vista.
In earlier versions of the Windows operating system that run on a basic input/output system (BIOS)-based computer, such as Windows XP, the boot process starts with the system BIOS. The BIOS determines the boot device, and then loads the first physical sector. This physical sector is named the master boot record (MBR). The MBR contains the partition table and the necessary boot execution code. This code searches the partition table to find the active partition and passes control to the boot sector on the active partition. Then, the boot sector on the active partition loads the Ntldr program. The Ntldr program parses the Boot.ini file. This file is used to enumerate the operating systems that are installed.
When Windows Vista starts on a BIOS-based computer, the BIOS loads the MBR and then loads the boot sector. However, boot code loads the new Windows Boot Manager program (Bootmgr). The Windows Boot Manager program parses the Boot Configuration Data file, enumerates the installed operating systems, and then displays the boot menu. If an earlier version of the Windows operating system is installed in a dual-boot configuration with Windows Vista, the Windows Boot Manager program transfers control to the Ntldr program for the earlier version of the Windows operating system. The Windows Boot Manager program does this when you select Windows Vista from the boot menu.
When you install an earlier version of the Windows operating system on a Windows Vista-based computer, Setup overwrites everything from the MBR, the boot sector, and the boot files. Therefore, the earlier version the Windows operating system loses forward compatibility with Windows Vista.