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It is possible with some computers, but I also have run into some fairly major problems when trying to upgrade from Home to Pro. As with any upgrade, I strongly suggest formatting first.
 
When going to install a newer version of XP with SP2 you can simply choose the option seen to delete the current installation at that time. If the existing installation is the newer one then you are forced to delete the existing partition to create and format a new one. One is not intended to upgrade the other version.

XP Home with SP1 will have problems removing either the Home or Pro editions that are running SP2. The new releases can be a block there where another method of deletion may be required. GPart: Gnome Partition Editor is one such effective "partition blaster" for something like this.
 
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