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Don't get the two versions mixed up though, there is really no difference between the core code of Windows XP Professional and Windows XP Home Edition. Both versions use the Windows NT Kernel, thus giving you the same stability no matter what version of Windows XP that you choose. Windows XP Professional gives you the same level of administrative power over Windows as Windows 2000 gives you.
Windows XP Pro also gives the following features that Home Edition doesn't.
•SMP support (multi-processor support)
•Roaming user profiles
•Encrypting file system
•Offline files and folders
•Remote installation service
•Windows server domain support
•Software installation and maintenance
•Multi-lingual user interface support
Average Home Computer User
Windows XP Home Edition
User who likes to tweak or used Windows 2000 at one time or another
Windows XP Professional
There is a great article about this question written by Paul Thurrott. It is located here.