Reply
Yes, my friend's brother's copy of XP was a legitimate copy that was installed and activated.
When I installed XP on my system, I had some problems with it and ended up talking to MS tech support staff on the phone. At the time I asked them about the idea of also installing XP on my second computer (I have 2). The MS Tech Support guy was very clear that I could not do that. He stated that once the second installation was activated, that when I went online with the first system (PC) then MS would shut down my first system.
I told my friend this and he said, "Of course they would tell you that". All the info, I have read supports what MS says though.
Here is an excerpt from what I have read;
___________________________________________________
XP activation FAQs
By David Williams, TechRepublic
05 August 2002
As a support technician for a major PC manufacturer, customers frequently ask me to outline the basics of Microsoft's latest antipiracy effort, Product Activation.
They want to know if it will affect the software they can install, if it will prevent future hardware upgrades, and above all else they want to know how it will affect their privacy.
To help you explain the basics of Product Activation, I've compiled 10 of the questions I am asked most frequently and the answers I give to those questions.
How does Product Activation work?
Product Activation is currently required for all OEM and retail versions of Windows XP, Office XP, and several other Microsoft products.
Product Activation isn't required on licenses acquired through one of Microsoft's volume licensing agreements. So agreements such as Microsoft Open License, Enterprise Agreement, or Select License, will not require activation. Click here for a complete list of products from Microsoft's Web site.
During the installation process, you must enter the product key associated with the particular copy of the software. After you enter this product key and accept the end user license agreement (EULA), you'll be prompted to activate the software.
You can choose to activate the software now or later. Once you've chosen to activate the software, you must opt to do so over the Internet or via the phone.
The Product Activation screen for Windows XP
During the activation process, an algorithm uses the software's product key and information about the machine's hardware to create a 50-digit installation ID. For a very detailed description of how the installation ID is created, check out this paper from Fully Licensed GmbH, a German copy-protection company.
The Installation ID is then transmitted to Microsoft via the Internet or by you, over the phone. A confirmation ID will be either sent back to you via the Internet or given to you while you're on the phone. Once you enter the confirmation ID, the activation process is complete.
Frequently asked questions
Now that you know how Product Activation works, let's take a look at the 10 questions end users ask me most frequently.
1. What data does Microsoft gather during activation?
The only information transmitted to Microsoft during activation is the installation ID and, for Office XP and Visio 2002, the name of the country in which the product is being installed. What about the hardware information used to create the installation ID? According to Microsoft, once the installation ID has been created, there is no way to use this ID to determine the computer's hardware configuration.
2. Will the product work without being activated?
Yes, but only for a short time. The Office XP family of products can be launched 50 times before activation is required, and Visio 2002 can be launched 10 times. The grace period for Windows to be activated is 30 days from first boot or upgrade; beta versions require activation in 14 days.
3. Can I use my software after the grace period without activating it?
No. Once the grace periods have expired, Office XP and Visio 2002 will go into what's known as "reduced functionality mode" (see question four) and Windows XP will cease to function except for allowing the user to activate the software.
4. What is "reduced functionality mode" and what products does it pertain to?
Office XP and Visio 2002 will go into “reduced functionality mode" if the user doesn't activate before the end of the grace period. In this mode, users will not be able to save changes to documents or create new documents, and additional functionality may be reduced. Existing files won't be altered. You can edit or save them once you activate your version of Office XP or Visio 2002. Users will regain full functionality after the software is activated.
5. Will I have to reactivate my copy of Windows XP if I upgrade my hardware?
Unfortunately the only answer to this question is maybe. Microsoft states that changing some hardware items after activation will cause your activation to be invalid and require reactivation. Microsoft doesn't detail which hardware items are involved, but according to the white paper by Fully Licensed, the following components are all used to compute the installation ID:
___________________________________________________
Thanks
Engineer