If you want to do this using the tools that come with XP then you'll have to loose all or some of the information on the OTHER partitions of youre HDD. You shouldn't loose any info on your windows partition though.
Right-click my computer and select manage. From here click on disk management. You'll need to delete any partitions on there (excluding your windows partition) and then you should be able to extend your windows partition to the whole drive (I haven't done this for a while but I think you just drag the partition to the size you want it).
If there's data on the other drives that you need then you'll have to use something like partition magic to do this.
Another option is to install your programs to a different partition and move your virtual memory to a different partition - this way XP won't take up any more space and 2Gb should do you fine
Chris.