Can I install XP on as many partitions as I want without worrying about activation?
Yes. As long as XP is installed on a partition on the same computer, you can install it as many times as you want. You can activate XP on each partition without a problem.
That's all it says about it but it seems reasonable to me. It is still on the one computer.
We formatted and reinstalled. The only way I could for mat the 30gig remaining was to install XP on it as well, then delete the windows folder on that partition. Not how do I get rid of the dual boot menu?
Actually, if you do that (although i'm not suggesting anyone does) you can still access the protected files/folders of a previous user account because they dont get deleted. But you have to boot into safe-mode and take ownership of the files/folder.