It will be able to download, but not configuring settings and installing programs.
The default usergroups in XP are (of course you can create your own groups if your RTFM):
Administrators
Backup Operators
Guests
Network Configuration Operators
Power Users
Remote Desktop users
Replicators
Users
HelpServices users
The way Windblows are set isn't exactly friendly if you want to set your own group profile- but anyway it isn't restrictively difficult.