I am successfully using AS v. 2.0 with Windows XP; so I know it's possible. I installed it over a year ago, and I don't remember how. It seems as though I simply copied the files onto the hard drive and doble-clikked the .EXE file, though I'm not sure. There doesn't seem to be any reference to it in my Windows registry. I can copy and paste to other programs fine.
The file handling interface with v. 2.0 is clunky, but I prefer the program to v. 6.