Have any body tried to boot "embedded XP with console redirected to serial port" using LinuxBIOS (freebios + ADLO bochs)?
You are in uncharted waters. IIRC W2k is the only OS of that family that has been booted. See the wiki and Adam's page.
Is it possible to boot XP with the LinuxBIOS that has no VGA support?
generally speaking yes.
No VGA will make it easier but who knows what kind of bios calls XP makes along the way.
Can bochs itself boot the image? That would be the first step. That way you have lots of debugging tools available.