Will Wing Commander II Deluxe Edition work on windows xp

Yes; you just need to use a program like DosBox to make it compatible. Try a Google search like this for more info:

http://www.google.com/search?q=Wing+Commander+II+dosbox&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a