No,
"FIRM serves as an interface between DOS and the hard disk(s). You can use FIRM commands to
manage both DOS disks and FIRM drives (FAT,NTFS, and EXT2)."
http://www.altiris.com/upload/rapideploy_6_1.pdf
Page 91
xcopy is a 32-bit app that is isn't going to work in the FAT file system (let alone 16-bit environment). And if you pretend it could run, it wouldn't see the NTFS hard disk. Essentially you need a tool that can work with all the necessary filesystems FAT,NTFS,EXT2 ....