How do i delete one windows system and keep the other?

Boot into Windows 7, go to Disk Management:
Control Panel > Admin Tools > Computer Management > Disk Management
Find the Windows XP partition.
Right-click and choose "Format".
When format done, close Disk Management.

If you had a dual-boot setup, open msconfig
Start > Run. Type msconfig & press <Enter>.
Under the "Boot" tab, delete the Windows XP line.
Click 'OK'.