RedHat will install very well on its own harddrive, as MaXimum SMOKE said "hdb" (assuming it's the second IDE drive). You can use grub as the bootloader. Lilo has been around longer, and is quite capable, but I've had much better joy with grub

.
It is also possible to use the NT bootloader that comes with XP, but for that I would refer you to the how-to docs at
www.linuxdoc.org.