Running Windows XP Mode as a Virtual Machine in VMware Player it is in essence a linked clone and is dependent on the "Windows XP Mode.vmdk" file as well as the files created by VMware Player. So if you were to backup the "C:\Program Files\Windows XP Mode" or "C:\Program Files (x86)\Windows XP Mode" folder and the folder created by VMware Player for the Windows XP Mode VM and restore them to the same location after the Host OS reinstall along with the newer version of VMware Player you should be able to continue using the VM without doing anything other then upgrading VMware Tools in the VM.
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