Hi Kaushal,
Sure, if it is the full SEP 11, then the SEP 11 SEPM can fully manage the clients. It can create packages, policies, etc. The SEPM does not care if the SEP 11 clients are running on Windows XP or Windowws XPE.
The SEP 11 SEPM cannot manage "Endpoint Protection for Windows XP Embedded 5.1" clients. That product has its own management console, etc.
Here's a good article or two:
Windows XP Embedded Support in Symantec Endpoint Protection (SEP) 11 vs. Sygate Symantec Endpoint Protection (SSEP) 5.1
Article: TECH91152
Article URL http://www.symantec.com/docs/TECH91152
Migrating the Symantec Enterprise Protection 5.1 Server to Symantec Endpoint Protection 11.0
Article: TECH92394
Article URL http://www.symantec.com/docs/TECH92394
One thing to remember: the footprint of resources that a SEP 11 client will need will remain the same whether it is on XP or XPE. That can be a bit heavy for thin clients.
Thanks and best regards,
Mick