In XP go to this directory...
C:\WINDOWS\system32\drivers\etc
Open the extensionless file named "hosts" with notepad.
Now you should see an example of...
# 102.54.94.97 rhino.acme.com # source server
So for example if you were running Apache locally and wanted to test a site locally but could not access it without a domain name then you could edit this file (with notepad) and then add the following line...
192.168.0.2 myexample.net
Clarification:
Router Users: Default Gateway is YOUR computer's local IP.
Non-Router Users: You can access your system via Apache via your IP address.
If you add that line (and I intentionally left out the amperstamp) then when you access that domain name (that you can change to) you can now access your local apache htdocs folder via that domain name.
Now of course you will want to use a domain name that works for you but also not block a website you are used to using.