Basic question;  compatability of Win XP oem version with Parallels on mac

I am very new to this, being a recent win to mac convert so please excuse.
I have ordered a new Imac 24 and I need to use a few of my old windows programs on it. I understand the use of parallel and boot camp.
my question; I would like to purchase the OEM version of Win XP as it is less expensive than the full boxed version.
Will it work on the boot camp and Parallel programs and allow me to boot up win XP on my new mac and use the windows based Dragon Naturally speaking program.???
thanks in advance for your anticipated response.

Yes

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