It's not going to work. Windows XP is too old for the CRT to work - and what you are suggesting is that you want Microsoft's CRT both now and forever to permanantly live in 2002-land - and forego every new technology and invention since XP shipped in order to support old-and-crusty OSes that Microsoft isn't even supporting.
If you want to write apps for XP, use VS2010. You don't need VS2011 even half as much as your customers need to upgrade. It's already going to be a pain for you to test (since VS2011 sure as hell won't run on XP either) - why not just put VS2005 on an XP machine and then you'd be able to press F5-and-test rather than having a pretty VS2011 on a completely different machine that you have to copy the binary to your XP machine to test anyway?
If you really care that much, swap out the compiler by changing the build settings to use a VS2008 compiler or GCC and then you can use the VS2011 front-end and spit out binaries ready for even the crustiest machines.