The problem here is that the EULA from M$ states what you may and may not do with the software, but that this EULA is in fact in violation of some laws, depending of the country in which the software is bought. For instance, in the USA the EULA from M$ is perfectly legal, but in the Netherlands it isn't. According to Dutch law, once you've bought the software you can do with it whatever you like (resell, put on a new computer, whatever except copying). According to the OEM EULA you only buy the right to use the software on the PC you bought it with. The Retail EULA states you may only use it on the first PC you install it. Of course that is quite hard to prove and that's why retail versions cost much more. That is also one of the reasons for Windows Activation policy. Because activation uses a per hardware unique identifier, M$ can (theoretically, anyway) see wheter you install you're Windows software on more than 1 PC. Through this, M$ also wants to prevent that, when you scrap your old PC and buy a new one, you would re-use your legal copy of Windows on your new PC. Understand why I refer to M$ instead of MS? For the same legal reasons, in some countries it is legal to sell OEM licenses apart from a PC. Hope this helps, Refthoom