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Home or Pro? OEM or Retail? Upgrade or Full? And what about Academic, Volume Licensing or Media Center? Everything you've always wanted to know about Windows version selection and respective licensing, and you were afraid to ask, is finally answered herein.


When you face the decision to buy Windows XP for your existing computer, or to select an XP version to be pre-installed in your newly purchased one, there are a lot of questions that arise and need to be answered in an educated manner, so that you avoid taking a decision which will lead to remorse. Moreover, from the moment you start using Windows XP you face additional dilemmas that stem from the licensing terms and conditions you consented to when you installed the Windows operating system in your computer, and you are wondering where can you look for the right, educated answers. This article intends to be your definitive reference for all these, once and for all.


A. SOFTWARE vs LICENSING DIFFERENCES

One thing that you need to understand clearly from the very first moment, is to distinguish between the Software versus the Licensing differences between the various Windows versions.

A software difference is one that renders two products to be two separate entities. For example, Windows XP Home and XP Professional are two different operating systems. Even if their differrences are not huge, they are treated by your computer as two entirely different pieces of software. Their installation media do not contain the same files. Therefore we can say these two have software differences separating one from the other.

On the other hand, the OEM version of Windows XP Home and the Retail one, are the same operating system. Your computer treats them the same way and their installation media contain the same files (for the scope of this article). What distinguishes these two is how you are allowed to use them and/or the prerequisites for obtaining them. Therefore we can say these two have licensing differences separating one from the other.

The Windows XP products that constitute separate entities, and thus have software differences between them, are the following:
1. Windows XP Home Edition (XP Home).
2. Windows XP Professional (XP Pro).
3. Windows XP Media Center Edition 2005 (MCE).
4. Windows XP Tablet PC Edition.
5. Windows XP Professional x64 Edition.
6. Windows XP 64-bit Edition for Itanium-based Systems.
7. Windows XP Starter Edition.
8. Windows XP Embedded (XPe).
9. Windows Fundamentals for Legacy PCs (WFL).
10. Windows XP Home Edition N (XP Home N).
11. Windows XP Professional N (XP Pro N).

The possible versions for a Windows XP product (although not all of them are available for each and every one of them) that are based on licensing differences are the following:
1. OEM (Original Equipment Manufacturer).
2. FPP (Full-Packaged Product).
3. Volume Licensing (Open, Select, Enterprise or Enterprise Subscription).
4. Academic Edition.
5. Complete package.
6. Upgrade package.
7. Promotional package.
8. Genuine Windows Offer (Complimentary or Electronic Key).
9. Trial version.


B. HOW WILL YOU KNOW YOUR RIGHTS?

All your rights and obligations that relate to the Windows XP operating system are spelled out in the End User Licensing Agreement (or EULA for short). This document you will need to consent to, in order for Windows to be installed in your computer. If your computer came with Windows pre-installed, you are deemed to be in full agreement with the EULA terms and conditions from the moment you accepted buying that computer.

If you have Windows XP already installed in your computer, you can locate the EULA in the C:\WINDOWS\system32 folder; it is the eula.txt file. In case you wish to read a Microsoft EULA before buying one of their products, you can find them all at the License Terms for Software Licensed from Microsoft page. Please note that aforementioned page includes only the retail EULAs; for OEM (pre-installed) versions and Volume Licensing, you will need to consult their respective documenation, as well as the Licensing Part of this article.

In order to have most of your questions regarding the EULA answered by Microsoft themselves, please read the Questions and answers about the End User License Agreement page.


C. WHICH XP EDITION SUITS YOU BETTER?

Windows XP comes in five basic consumer editions (Home, Pro, MCE, Tablet and x64). Your definitive reference for reaching a decision is the Five editions of Windows XP compared page. Here we will summarize the most important characteristics of each Windows XP version:

1. Windows XP Home Edition. This is the basic Windows operating system for the home user. If a computer is not intended to join a Windows Server domain, have scalable processor capabilities, be used remotely or use file encryption, then this is the first XP edition to consider.

2. Windows XP Professional. This is the Windows operating system targeted to small businesses and power users. Its additional features over XP Home are the following:
• Remote Desktop – remotely access your Windows XP Professional PC, from another Windows PC, so you can work with all of your data and applications while away from your office.
• Offline Files and Folders - access to files & folders on a network share when disconnected from the server.
• Scalable processor support – up to two-way multi-processor support.
• Encrypting File System - protects sensitive data in files that are stored on disk using the NTFS file system.
• Access Control – restrict access to selected files, applications, and other resources.
• Centralized administration - join Windows XP Professional systems to a Windows Server domain to take advantage of the full range of powerful management and security tools.
• Group Policy - simplifies the administration of groups of users or computers.
• Software Installation and Maintenance – automatically install, configure, repair, or remove software applications.
• Roaming User Profiles - access to all your documents and settings no matter where you log on.
• Remote Installation Service (RIS) – support for remote operating system installations where desktops can be installed across the network.
• Multi-lingual User Interface (MUI) add-on - change the user interface language to get localized dialog boxes, menus, help files, dictionaries, and proofing tools etc.

3. Windows XP Media Center Edition 2005. This XP edition is based on XP Pro and lets you experience video, audio, pictures and TV through a convenient user interface that makes it easier to enjoy digital media. Its use of simple layouts and a remote control specifically made for Windows XP, makes it easy and comfortable to watch digital content on your computer monitor or TV display from anywhere in the room. Theoretically, Windows XP Media Center Edition 2005 is only available pre-installed on computers sold by PC manufacturers. You can purchase a PC with Windows XP Media Center Edition 2005 pre-installed at retail consumer electronic stores, direct from PC manufacturers, or through online consumer electronics Web sites. However, there seem to be MCE installation media sellable from various sources, as well (this phenomenon started with the 2005 edition; previous ones were never made available to the public). Because of this edition's nature, the only MCE version available is the OEM one. This means that, if you intend to build a Media Center PC yourself, you can obtain the MCE operating system and use it in your own build.

4. Windows XP Tablet PC Edition. This XP edition is based on XP Pro and is intended for Tablet PCs, a specific genre of portable computers. By extending pen and speech capabilities, the Tablet PC provides you with a more versatile and natural computing experience. You can use the digital pen to write directly on the screen and control your computer just as you would with a mouse, plus you can use the Tablet PC Input Panel to enter text into any application by using your own handwriting. Due to the nature of the hardware (one cannot build a Tablet PC on one's own), this XP edition is procurable only pre-installed, and only when buying a Tablet PC; it cannot be purchased directly even as OEM media. The Windows XP Tablet PC Edition 2005 comes with Windows XP Service Pack 2 (SP2) and is available for free, for new and existing Tablet PC users.

5. Windows XP Professional x64 Edition. First of all, for one to be eligible for the x64 edition, one's processor needs to be x64 capable. The problem is not all 64-bit processors are x64 capable, so you will have to consult this: Is my processor x64 capable? AMD64 and EM64T processors can use this XP edition. All the considerations you will need to take into account, are contained in the following white paper: Is Windows XP Professional x64 Edition Right for Me? One benefit of the x64 edition is that, by using the 64-bit architecture, it allows a maximum RAM of 128GB and 16 terabytes of virtual memory, so applications can run faster when working with large data sets. Moreover, 64-bit native applications can deliver more data more quickly, so memory-intensive applications can run more quickly and efficiently.

6. Windows XP 64-bit Edition for Itanium-based Systems. The IA-64 (Itanium) processors are 64-bit ones, yet they cannot run the x64 edition; for them exists a specific XP edition. Here is the Technical Overview of Windows XP 64-Bit Edition Version 2003 for Itanium-based Systems and the principles of Microsoft Windows XP 64-Bit Edition. Initial version was 2002, and version 2003 added support for the Itanium 2 processor.

7. Windows XP Starter Edition. This XP edition is a lower-cost version of Windows XP available only in Thailand, Turkey, Malaysia, Indonesia, Russia, India, Brazil, Argentina, Chile, Mexico, Ecuador, Uruguay and Venezuela. It is similar to Windows XP Home, but is limited to low-end hardware, can only run 3 programs at a time, and has some other features either removed or disabled by default. If you reside in an eligible market, here is the Microsoft Windows XP Starter Edition Fact Sheet.

8. Windows XP Embedded. This is the componentized version of Windows XP Professional. The devices targeted for XPe have included ATMs, slot machines, cash registers, arcade games, industrial robotics, thin clients, set-top boxes, network attached storage (NAS), time clocks, navigation devices, etc. Custom versions of the OS can be deployed onto anything but a full-fledged PC (due to licensing restrictions only). Here is the resource center for Using Microsoft Windows XP Embedded and information About Windows XP Embedded.

9. Windows Fundamentals for Legacy PCs. This is an operating system based on Microsoft Windows XP Embedded Service Pack 2 (SP2), which was designed for customers who have older computers running earlier operating systems and who are not in a position to purchase new hardware. This operating system is available only to Microsoft Software Assurance customers. Here is the fact sheet for Windows Fundamentals for Legacy PCs.

10. Windows XP Home Edition N. This version includes the same functionality as Windows XP Home Edition, except that it does not include Windows Media Player. It is available only within the European Union. This version was the result of a European Commision Decision. All relevant information, differences from the full version and FAQ can be found at the Windows XP Home Edition N page.

11. Windows XP Professional N. This version includes the same functionality as Windows XP Professional, except that it does not include Windows Media Player. It is available only within the European Union. This version was the result of a European Commision Decision. All relevant information, differences from the full version and FAQ can be found at the Windows XP Professional N page.


D. XP HOME vs XP PRO

All the Windows XP hardware-specific versions (Tablet, x64, 64-bit, XPe) are quite straightforward when it comes to understand if you need them or not - since, if you do not have the hardware in question, they are consequently eliminated as possible candidates for your system. Moreover, MCE is intended for Media Center PCs. If you do not intend to buy or build such a PC, it is irrelevant to evaluate MCE as your potential operating system. Finally, Starter and WFL are fringe editions, and thus out of scope for your evaluation.

And that brings us to the elementary question regarding the "Which XP" question... Home or Professional?

Well, the Home Edition has a lower price tag compared to Professional, so any decision to finally go for XP Pro has to be substantiated and justified. First of all, there are some obvious reasons to choose XP Pro instead of Home:
• The computer in question will join a Windows Server domain.
• The computer will not join a domain, yet it will be connected to more than five (yet maximum ten) other computers.
• The computer is equipped with genuine Symmetric Multiprocessing, i.e. two separate physical processors.

Then, there are some performance concerns: Maybe XP Pro is "too much" for my computer? You have to keep in mind that the System Requirements for both XP Home and XP Pro are identical; so, there is no possibility that your computer is adequate for XP Home and insufficient for XP Pro. (See the System requirements for Windows XP operating systems; additional requirements cover only XP Pro-specific features in case one wants to use them: Windows XP Professional System Requirements.) Moreover, XP Pro may have more features than XP Home, yet all of them can be disabled (in case they are not needed) thus bringing XP Pro to exactly the same level with XP Home as far as resource usage is concerned. Plus, in case any of the XP Pro features is deemed necessary by an XP Home user, the possibilities are either non-availability at all, or availability via a third-party program - which brings the same end result (or, usually, even worse) in relation to the computer's resources.


E. NOT-SO-OBVIOUS REASONS FOR CHOOSING XP PRO

The tricky part regarding which version to select for your computer, XP Home or XP Pro, is the fact that once you have made up your mind and settled for XP Home, if later you discover that this version was inadequate for your needs, then you will have to bear the cost of upgrading to XP Pro. And, especially if XP Home came pre-installed in your computer (OEM), then it cannot be re-used to another PC due to licensing limitations.

So, it is of paramount importance that you take all parameters into account, and even play a bit devil's advocate regarding your growth-potential future needs; because it is always better to be safe than sorry. I've thought of a few cases where a user would benefit from having XP Pro instead of XP Home; these in no way represent an exhaustive listing of all potential cases, yet I believe will help you get an idea. (Some of the scenarios below might have specific prerequisities, yet are mentioned here for generic illustrative purposes only.)

1. You need a faster computer and have no money to invest in it. With Windows XP Pro you can create various user accounts for tasks that call for different configurations. You have total control on exactly which programs will load, which services will run and how your computer in general will behave for each one of these user profiles. This way, if you lack speed for a specific operation you undertake frequently in your computer, you can easily create a respective optimized user profile, where only the absolutely necessary things will run whenever you use it, thus assuring an optimum use of your resources - which cannot be achieved so easily in any other way.

2. Your children use your computer. Through Access Control and by editing the Group Policies, you can easily retain full control of the usage spectrum of your computer when your kids log in it with their own accounts.

3. You want protection from Murphy's Law in your professional or academic life. Imagine a scenario when you arrive at a prospect's office for a presentation or you have some homework to submit in your college. You have double-checked the storage media you took with you, yet for whatever reason it refuses to function. By using the Remote Desktop you can have access to the needed files and retrieve them from any distant point.

4. You need more quality time with your loved ones. Once again, the Remote Desktop comes to the rescue. Work from home (even in unscheduled occurences) while accessing data at work.

5. You work in a data-sensitive vocation. Many professions can benefit from the use of the Encrypting File System.

6. You work in a multi-lingual environment. Windows XP Pro allows you to have elements of your operating system localized in various languages.

7. You have a laptop and would like to take advantage of it in your business, too. So, it may be a stand-alone machine, yet it is so convenient when you can network it at work and join the domain there.

8. You need a personal Web Server. Windows XP Home does not include the IIS Web server 5.1 software found in XP Pro.

9. You need to have dynamic disks in your PC. Only XP Pro (not Home) supports dynamic storage.


F. WHAT ABOUT LICENSING FOR MULTI-PROCESSOR/MULTI-CORE MACHINES?

With the arrival of the Hyperthreading Technology, where the installed processor is seen by the system as two physical processors (although they are twin only virtually; physically the processor remains single), and later the arrival of Dual-Core and (the expected) Quad-Core Processors, emerged the need to implement changes in the way the Windows XP operating system is licensed for machines that are equipped with one processor which is composed by more than one processors or cores. The important thing to know is that both Hyperthreading and Multi-Core implementations, are considered as single processors from a licensing aspect. In Multicore Processor Licensing Microsoft states that their licensing is based on a per-processor model and will continue to be licensed on a per-processor (not on a per-core) model.

Yet another important thing to know is that Windows XP Pro and Home are licensed per installation and not per processor - they only have a different limitation between them. Windows XP Professional can support up to two processors regardless of the number of cores on the processor. So, if somebody has one machine equipped with two physical (not virtual, as is the case with Hyper-Threading) processors, then only Windows XP Pro can support it. Microsoft Windows XP Home supports only one processor, which (after all aforementioned clarifications) means that XP Home can still run both in dual-core processors (like Intel Pentium D, Core Duo, Core 2 Duo, or AMD Athlon64 X2, Athlon64 FX60/62, Opteron Dual-Core) and in Hyper-Threading enabled processors (like Intel Core 2 Extreme, Pentium Extreme Edition, Pentium 4 Extreme Edition HT, Pentium 4 HT, Mobile Pentium 4-M). For the latter, see Windows XP and Hyper-Threading, which states:

Quote:

Hyper-Threading CPUs contain a second (virtual) CPU. With this feature, multi-threaded applications can run threads in parallel in each processor. As a result, you experience more efficient use of the processor resources and better performance with multi-threaded applications. Windows XP Home can use a maximum of one (1) physical processor. However, because Hyper-Threading is supported, the operating system takes advantage of the second (virtual) processor.

G. WHAT IS THE "COA"?

A Certificate of Authenticity (COA) is a label that helps you identify genuine Microsoft software. A COA is not a software license – it is a visual identifier that assists in determining whether or not the Microsoft software you are running is genuine. A COA without a legally purchased Windows operating system has absolutely no value and will cause you big trouble. However, without it, you will not have a legal license to run Microsoft software. A COA should never be purchased by itself; i.e. without the software it authenticates.

If you receive offers for COAs as stand-alone items, be aware that these offers are highly suspect and can put you at risk. To fall victim to stand-alone COAs offers means that you may have wasted valuable money and you will not have a legal license to run the software. The best way for you to protect yourself is to purchase software from a familiar, reputable reseller. The Anti-Counterfeiting Act of 2003 makes it a criminal offense for dishonest resellers to distribute stand-alone COA labels.

Everything you need to know about the Certificate of Authenticity (COA) can be found here:
What is a Certificate of Authenticity (COA)
Certificate of Authenticity
Certificate of Authenticity - What to look for


H. OEM (PRE-INSTALLED) vs FPP (RETAIL) VERSION

The difference between these two versions has strictly to do with the kind of intended usage; i.e. it is a licensing difference and not a software one.

The OEM version of Windows XP becomes unified with your PC - the two of them are indecomposable. If your PC is discarded for some reason, the OEM Operating System follows it to disposal, as well. If you install another Operating System in a single-boot configuration (i.e., you do not want to keep the OEM OS as an additional booting option), then the OEM OS cannot be used anywhere else and it useless from that point on.

The FPP (Retail) version of Windows XP is a stand-alone piece of software. You can install it in your PC now and, if later this PC runs on Vista for example, you can "remove" it and install it in another machine, without violating your licence agreement with Microsoft. The FPP version OS is and will always be your own, individual piece of property, not attached to any specific machine.

A very tricky point concerning the OEM version of Windows XP, is the one referring to the entity with whom the Agreement takes place. This is from the OEM-version Windows XP Pro EULA:
Quote:

This End-User License Agreement (“EULA”) is a legal agreement between you (either an individual or a single legal entity) and the manufacturer (“Manufacturer”) of the computer system or computer system component (“HARDWARE”) with which you acquired the Microsoft software product(s) identified on the Certificate of Authenticity (“COA”) affixed to the HARDWARE or on the associated product documentation (“SOFTWARE”).

Does this means that a PC-builder is legally regarded by the EULA as the “OEM”? Yes! Every PC-builder, even a non-professional individual, is for the scope of the Windows XP EULA regarded as “the manufacturer of the computer system”. The side-effect of this EULA provision is that, if you are the PC-builder AND the OS-installer, then you are entering an agreement with yourself! Since the EULA does NOT use the term “OEM System Builder” that Microsoft reserves for a specific kind of their Certified Partners, the PC-builder is actually the Manufacturer. Even MS suggests in this FAQ that a user with no Operating System can do this:
Quote:

You can acquire a Full-Packaged Product (FPP) version of the product from your local retail store. Or you may purchase an OEM version of an operating system from a Microsoft System Builder, subject to the requirement that you purchase hardware with that OEM version of the product. At that time, you should receive a genuine EULA, Certificate of Authenticity (COA), and manual.

I. HOW IS THE COMPUTER THAT GETS “MARRIED” TO OEM WINDOWS DEFINED?

Windows XP EULAs normally allow for an installation to a single computer. Here is the relevant provision from the OEM-version Windows XP Pro EULA:
Quote:

THIS LICENSE MAY NOT BE SHARED, TRANSFERRED TO OR USED CONCURRENTLY ON DIFFERENT COMPUTERS. The SOFTWARE is licensed with the COMPUTER as a single integrated product and may only be used with the COMPUTER. If the SOFTWARE is not accompanied by HARDWARE, you may not use the SOFTWARE. You may permanently transfer all of your rights under this EULA only as part of a permanent sale or transfer of the COMPUTER, provided you retain no copies, if you transfer the SOFTWARE (including all component parts, the media, any upgrades, this EULA and the Certificate of Authenticity), and the recipient agrees to the terms of this EULA. If the SOFTWARE is an upgrade, any transfer must also include all prior versions of the SOFTWARE.

So, if a PC-builder buys and uses an OEM-version Windows XP CD for the PC he built himself, an issue that instantly arises is where the line describing this PC's “baseline configuration” is drawn (as you can see the EULA states only “COMPUTER”). There has been the notion around that this is the motherboard. Well, actually it may be that, but it very well may be not. The important point is what upgrade actions one performs on one's PC and why. First of all, this is how Microsoft sees it in the aforementioned FAQ:
Quote:

What is the difference between OEM product and Full-Packaged Product (FPP)? OEM products are intended to be pre-installed on hardware before the end user purchases the product. They are “shrink wrapped” and do not come in a box like the retail products do. Full-Packaged Product (FPP) is boxed with CD(s), manuals, and the EULA and is sold in retail stores in individual boxes. The End User License Agreements (commonly referred to as “EULAs”) for OEM and FPP products are slightly different. One main difference is that an OEM operating system license (such as the license for Windows) cannot be transferred from its original PC to another PC. However, the FPP version of Windows may be transferred to another PC as long as the EULA, manual and media (such as the backup CD) accompany the transfer to the other PC. Also, when a customer purchases an OEM product, the OEM license requires the OEM to provide support for the product.

As one can easily see, the OEM provision is pretty straightforward for laptops, yet things change dramatically for personally-built desktops. Here is Microsoft’s view, again from aforementioned FAQ:
Quote:

Current OEM licenses for all Microsoft operating system products are not transferable from one machine to another. An OEM product is “married” to the original PC on which it was installed. Current OEM licenses are not transferable from one machine to another. The software cannot be moved from PC to PC, even if the original PC it was installed on is no longer in use. This is true for all OEM software – operating systems and applications.

OK, so far so good. These views in fact reflect the EULA accurately. And they keep mentioning “machines” and “PCs”; terms rather vague. However, this FAQ goes a bit further:
Quote:

Rather than purchase completely new PCs, my organization performs in-place upgrades to the hardware on many of our computers. We often times only replace the motherboard, processor, and memory. Since the COA is still on the case and the OS is still installed on the hard drive, this computer is still licensed, right? Generally, you may upgrade or replace all of the hardware components on your computer and maintain the license for the original Microsoft OEM operating system software, with the exception of an upgrade or replacement of the motherboard. An upgrade of the motherboard is considered to result in a “new personal computer”. Microsoft OEM operating system software cannot be transferred from one computer to another. Therefore, if the motherboard is upgraded or replaced for reasons other than a defect then a new computer has been created, the original license expires, and a new full operating system license (not upgrade) is required. This is true even if the computer is covered under Software Assurance or other Volume License programs. If I upgrade some of my PC components, do I have to purchase a new operating system? The answer depends on the components that are upgraded or changed in the PC. The operating system licenses must remain with the device that retains the motherboard, chipsets, and chassis that include the serial number of the device. The operating system may be installed on a new/replacement hard drive as long as the operating system is first removed from the old hard drive. Please refer to the section on “Modifications to hardware and how they affect the activation status of Windows XP” in the following link for a more detailed explanation regarding specific hardware changes. The same hardware component changes that can be made to a PC before requiring re-activation of Windows XP are the same changes that can be made before a PC is considered to be “new” - and when a new license for OEM software is required.

So, here is how the “computer equals motherboard” notion got started. First of all, nothing of these is explicitly stated in the EULA – and a FAQ may be an explanation, but in no way a legally binding document. In any case, it is the EULA that prevails, and above that, it is the Copyright Law’s general provisions that prevail. Another thing is that the link provided by Microsoft is no longer active. Here are the Technical Details on Microsoft Product Activation for Windows XP. I quote:
Quote:

If your PC is pre-activated in the factory using the SLP pre-activation method, all the components in the PC could be swapped, including the motherboard, so long as the replacement motherboard was genuine and from the OEM with the proper BIOS.

Quote:

The change of a single component multiple times (e.g. from video adapter A to video adapter B to video adapter C) is treated as a single change. The addition of components to a PC, such as adding a second hard drive which did not exist during the original activation, would not trigger the need for a reactivation nor would the modification of a component not listed in the above table. Additionally, reinstallation of Windows XP on the same or similar hardware and a subsequent reactivation can be accomplished an infinite number of times. Finally, the Microsoft activation clearinghouse system will automatically allow activation to occur over the Internet four times in one year on substantially different hardware. This last feature was implemented to allow even the most savvy power users to make changes to their systems and, if they must reactivate, do so over the Internet rather than necessitating a telephone call.

The above have not changed with SP1 (Technical Details on SP1 Changes to Microsoft Product Activation for Windows XP). So, since the Activation does NOT exclude the motherboard as a legitimate upgrade within the OS scope, then there is no validity in the claim that another motherboard means another computer.

I personally believe that it is allowed by the Windows XP EULA that a PC-builder is able to upgrade various parts of his computer, as long as it remains actually the same machine. But eventually components fail with time; in this case he will need to replace them with identical parts, and no harm done with his OEM license. But what if those original components have become extinct? Well, I believe the Copyright Law allow the user and licensee of OEM Windows to keep using its original Windows is he is forced to do an “upgrade replacement”; that is, to replace a failed part with another one, that is newer and better. So, as a matter of fact, if a bona-fide OEM-Windows licensee is performing “upgrade replacements” of his computer's components this way, there is no strictly defined “baseline configuration”, as long as we're talking about the same computer. (Newer CPUs call for entirely different boards, which in term need other PSUs, etc.)

My argument that this is within legal boundaries? The fact that (1) Microsoft connects this to the Activation prerequisites and it is allowed there, and (2) Microsoft has a standard procedure for replacing a motherboard (even by upgrading it) and keeping using the same OS: How to replace the motherboard on a computer that is running Windows Server 2003, Windows XP, or Windows 2000


J. WHAT IS BETTER FOR ME - OEM OR FPP?

Sometimes you have no choice, as most of the new computers are sold with an OEM Windows XP operating system pre-installed. However, I have seen that there are actually manufacturers who can bundle a full-product Windows XP in lieu of the OEM they typically include with their computers, and ask for the price difference between these two. So, it never hurts to ask, in order to be fully aware of your choices before you purchase anything.

This becomes even more important of an issue, when the manufacturer of your computer does not provide with a "regular" Windows XP installation media, but rather a "recovery disc" instead. The Recovery CD is typically a means of returning your computer to its exact state as it was when it left this manufacturer's production line, thus being restricting when you wish (or are obliged to) perform some specific maintenance or troubleshooting operations in Windows XP. In cases where a computer comes with a Recovery CD only, I recommend that you explore the possibility of obtaining a normal Windows XP installation CD (either OEM or FPP) together with your new purchase, and actually install Windows youself as soon as you lay hands on your newly-acquired computer.

So, when you finally face the OEM-or-FPP dilemma, what should you choose? Stick to the FPP (retail version) Windows XP if you think some time in the future you'll inevitably have to discard the whole machine altogether, but you want to keep the invested value of your Operating System. Also, the FPP version is meaningful for individuals who own more than one PCs, because it allows them to move it around from one machine to another, when e.g. their prime PC is upgraded to Vista or they decide to make another one multi-bootable. If, on the other hand, you are building the computer youself, or if you buy it ready-made yet you intend to keep upgrading it youself, then the OEM version is better suited for you.


K. WHAT IS VOLUME LICENSING?

Volume Licensing (VL) is a means of obtaining (upgrade-version only) Windows XP in bigger quantities, and is intended for businesses, academic institutions and governmental organizations. To see which specific VL Program is better suited for you, consult the Licensing Suggestions Table and the Volume licensing agreements page. Additional resources can be found at Understanding Volume Licence Agreements, the Licensing Product Use Rights and the Microsoft Volume Licensing Sites Worldwide.


L. AM I ELIGIBLE FOR THE ACADEMIC VERSION?

Currently the only Windows XP family product available in Academic version is Microsoft Windows XP Pro Upgrade. The Academic Edition FPP is actually the same as the regular retail version. The only differences are the Academic Edition label and the discount price. To check out if you can take advantage of Academic offerings, you can check out the Are you eligible for Microsoft academic discount pricing? page. Prerequisites differ from country to country; here are the ones for Australia: Eligibility - Students and Teachers.


M. COMPLETE vs UPGRADE VERSION

All OEM versions are, by definition, complete packages of the Windows XP operating system. Since they are intended for newly-built computers, there is no possibility for a pre-existing operating system to upgrade from. On the other hand, existing computers running on older versions of Windows, may be eligible for the upgrade package of a Windows version. Users typically opt for an upgrade instead of a complete package, in order to benefit from the lower purchase price. Also by definition, all upgrade versions are not OEM, because you can only upgrade an existing computer - not a newly-built.

Not only is the upgrade package a retail product, but it also requires a retail-version of an older, eligible Windows operating system, in order to allow for the upgrade to XP. It will not work with OEM pre-installed Windows or Recovery media / Rescue CDs that accompany many OEM-built computers. It has a retail, transferable license and gets "married" to an eligible older retail-version Windows. The upgrade package becomes an inseparable add-on of the pre-existing operating system; these two have to be all the time together (although only in the licensing sense; not technically) for you to be lawful. You will never be able to sell or discard the pre-existing operating system installation disc.

The situation is entirely different for Volume Licensing users. Here, the only licenses that can be obtained via any VL program, are Upgrade ones by definition; that is, they have a prerequisite for a pre-existing operating system in the machines. So, the Upgrade license that is acquired through any VL program, assumes the exact same attributes as the original OS that it is supposed to upgrade; if that was an OEM one, then the Upgrade becomes OEM as well (and is thus non-transferable and dies together with that machine). If, on the other hand, it was an FPP OS, then the Upgrade retains its Retail characteristics and is fully transferable to another machine.

Here are the Windows XP supported upgrade paths:
• Retail users of Windows 98, 98SE and Millenium Edition (ME) are eligible for obtaining the upgrade package to Windows XP Home Edition.
• Retail users of Windows 98, 98SE, ME, NT 4.0, 2000 and XP Home are eligible for upgrading to XP Professional. However, NT 4.0 users can upgrade only after having successfully installed SP5. Moreover, it is not possible to upgrade Windows XP Home with Service Pack 1 (SP1) to Windows XP Professional without SP1.
• Retail or OEM users of Windows 3.1, 95, NT 3.51 or XP MCE, as well as any Windows Evaluation Version, are not eligible for any upgrade.
• Retail or OEM users of Windows XP Pro cannot downgrade to XP Home.
• Retail or OEM users of Windows XP Pro can downgrade to Windows 2000, NT 4.0 or 98SE.
• Retail users of Server editions (NT 4.0 Server and 2000 Server) are eligible only for upgrading to Server 2003, not Windows XP.
• Volume licensing users are eligible for upgrades according to their specific Volume Program. Moreover, these are the only ones who are entitled to downgrade rights from Windows XP Pro.

The upgrade package of Windows XP can be installed to a computer where the eligible older Windows version is either functional or not. That is, the hard disk can be wiped out and the upgrade can still be installed. When the installation of an XP upgrade package is launched, the Windows Setup searches for an older Windows operating system (something that the full package does not). If such an OS is found, then the procedure moves on. In case a pre-existing eligible OS is not found, you are prompted to insert its installation media; as soon as you successfully do so and it is eligible, the upgrade installation resumes.


N. TECHNICAL CONCERNS WHEN UPGRADING TO XP

Regardless if the Upgrade or the Full package of Windows XP is ultimately selected for purchase, they can both be used to upgrade a pre-existing eligible Windows operating system to XP, and thus retaining the user's settings, files and programs. Please keep in mind that the licensing concerns regarding the Upgrade and the Full Windows XP packages and the differences between them, have been discussed in the previous section. In this section, we assume that a user has selected either of the two packages (Upgrade or Full), and we discuss the various ways that are available for ultimately upgrading an existing older-Windows operating system to Windows XP. In this section, the terms "in-place upgrade" and "clean installation" are used. They do not correspond to Upgrade and Full package. One can use either Upgrade or Full for either an "in-place upgrade" or a "clean installation".

The difference between Upgrade and Full as two retail forms of Windows XP is only a licensing one; technically it is the same operating system - only that the Upgrade package will perform a search for a pre-existing eligible Windows OS, otherwise it will not launch. But when looking into the Upgrade and the Clean installation there is no licensing difference between them, there are simply two different procedures that lead to the XP being installed on a computer; the former retains information from the pre-existing OS installation, while the latter does not. This is to clarify that, when you are told here to opt for a Clean istallation instead of an In-place Upgrade, that does not mean you are told not to buy the Upgrade package and prefer the Full package instead; both methods compared in this section, can stem from using either the Upgrade or the Full package.

So, one option when installing XP in an older machine is that by selecting an in-place upgrade, one can retain one's settings, files and programs. However, this is not an easy road. There are many experts that say a clean XP installation is far more preferable, compared to an in-place upgrade - and this is my personal recommendation, as well. A clean installation mainly allows for a complete wipe of the system hard disk; an action that assures an acceptable level of data integrity for the XP-running machine. Of course, there are pros and cons in either option, so while trying to make up your mind, I suggest you consult the Upgrade or Wipe-and-Load white paper.

Nevertheless, we are going to cover the basic technical aspects of upgrading to XP, for all those who wish to opt for this path. First of all, users who upgrade to XP from Windows 9x and ME, will have the option to uninstall XP if they ever wish so (by default, XP Setup will backup the existing 9x/ME system so that one can uninstall XP and go back if problems arise; and it is better this default setting to be left as is). This option is not available to users who upgrade from Windows NT 4.0 or 2000.

The top priority for an older-Windows OS user (before purchasing any Windows XP Upgrade Package) is to download and run the XP Upgrade Advisor. This utility will tell them what problems they will face if they attempt to run the XP Setup, thus giving them time to confirm that they can actually get hold of all the necessary updates, and allow them to collect all these in time. Please read the Description of the Windows XP Upgrade Advisor.

After having run the XP Upgrade Advisor and making sure that all the necessary software and drivers updates have been obtained, and any incompatible hardware has been replaced, the user of an older-Windows OS is technically ready to upgrade to XP. A word of caution, though! All methods for upgarding to XP that are discussed herein, are paths to migrating your personal data (programs, documents and settings) to the newly-installed XP. They are in no way a back-up process, and should never be deemed as such. It is highly advisable to create exhaustive back-ups of all your personal data before attempting the OS upgrade to XP - and regardless of the path you ultimately choose to follow for this.

When users upgrade to XP from a Windows 98, 98SE or ME system, then the XP Setup actually examines their installation, moves their documents and personalized settings to a backup location, and then performs a clean installation of XP. After that, it goes back and applies those personalized settings to the new OS and moves their documents into the correct location. (For this reason, the upgrade method requires more free space than a clean installation.) As mentioned earlier, the pre-existing OS is backed up by default, thus allowing for an XP uninstallation capability, in case problems arise. However, this option is lost if the user selects to convert the file system to NTFS at the time of XP Setup. The other alternative is to keep the existing FAT/FAT32 file system and, when it is established there are no problems after the upgrade, to convert it to NTFS later.

Here are a few concerns regarding known issues associated with in-place upgrading to Windows XP: If the pre-existing OS is Windows 2000, then the Hardware Abstraction Layer (HAL) is preserved (read How to force a Hardware Abstraction Layer during an upgrade or an installation of Windows XP). If you are upgrading from pre-installed XP Home to XP Pro, then you have to take into account that Data loss occurs after you reinstall, repair, or upgrade Windows XP and that You May Lose Data or Program Settings After Reinstalling, Repairing, or Upgrading Windows XP. Also, keep in mind that Mail Folders, Address Book, and E-mail Messages Are Missing After You Upgrade to Microsoft Windows XP.

But, as I said earlier, the much more preferred way to upgrade to Windows XP is via a clean installation. But, in this case, what about the users' personal data? To help these users, Windows XP come with a tool called the Files and Settings Transfer (FAST) Wizard. You can run the FAST Wizard once on the computer (while it still runs on the old operating system) to collect and backup all your data and personal settings, and then run it again after Windows XP have been successfully installed, so that you restore all that information to the new system. I am stressing again, however, that no method presented herein (FAST Wizard or other) is a substitute for a complete back-up of all your personal data. The FAST Wizard is merely a tool to facilitate your migration to the XP - not a backup utility. Here are all the resources you might need:

First of all, using the FAST Wizard: Step-by-Step Guide to Migrating Files and Settings (this one is an excellent guide), How To Use the Files and Settings Transfer Wizard By Using the Windows XP CD-ROM and List of Programs Whose Settings Are Migrated When You Use the Files and Settings Transfer Wizard.

Second, troubleshooting the FAST Wizard: Files and Settings Are Not Transferred When You Use the Files and Settings Transfer Wizard. One definitive way of troubleshooting the FAST Wizard, is to use the User State Migration Tool (USMT) instead. Here is the Description of the User State Migration Tool for Windows XP Professional and (inevitably) How to Troubleshoot Issues with the User State Migration Tool and the Files and Settings Transfer Wizard.


O. AM I ELIGIBLE FOR A PROMOTIONAL PACKAGE?

If you already have a copy of Windows XP, then you may be qualifying for an additional license at a reduced price. In order to find out if you are eligible for this promotional offer, visit the Here’s the easiest way to get an additional license! page and simply enter either your current Windows XP Product ID or Product Key in the boxes, and then click Submit. Here’s what will happen next:

First, you’ll learn whether you qualify for an additional license, which license you qualify for (the full version or version upgrade), as well as the additional license pricing. Next, you will have an opportunity to order a Product Key for an additional license directly from Microsoft-approved reseller LTG. For countries outside USA, contact your local Microsoft office.


P. WHAT IS THE WINDOWS GENUINE OFFER?

The Microsoft genuine Windows offer is designed to help customers who unknowingly purchased counterfeit versions of Windows XP, by offering those who qualify a complimentary copy or electronic license key for a genuine copy of Windows XP. The offer is open to any person who purchased Windows XP (Home or Pro), or any Windows XP pre-installed on a new computer, before May 1, 2005 and who is 18 years of age or older at the time of application. Windows XP Upgrade purchases, as well as purchases made under volume license agreements, are not eligible. To find out everything regarding this offer, read the Microsoft Windows Genuine Advantage Customer Support FAQ.


Q. IS THERE A WINDOWS TRIAL VERSION?

Yes, there is. The Windows XP Professional x64 Edition 120-day Trial download is available at no charge. If you choose to register to download the software, note that you will not receive product CDs. It is applicable for the following processors: AMD Athlon 64, AMD Opteron, Intel Xeon with Intel EM64T support, Intel Pentium 4 with Intel EM64T support. Alternatively, you can order this Trial version in CD. Windows XP Professional x64 Edition trial software


R. IS IT LEGAL TO SLIPSTREAM OR USE ONLY PART OF WINDOWS?

The EULA explicitely states that Windows XP is licensed as a single product. Its component parts may not be separated for use on more than one computer. However, it is allowed to separate some parts in order to use them on the single computer for which the OS is licensed. This is the reason way one can lawfully slipstream Windows or use BartPE. The prohibition refers to dismantling Windows in order to install it in more than one machines.

Moreover, Reverse Engineering, Decompilation and Disassembly are allowed only to the extent that such activity is expressly permitted by applicable law. For the cases without an explicit law provision and for all cases beyond the existing law provisions, you may not reverse engineer, decompile, or disassemble Windows.


S. COPYING vs BACKING UP YOUR WINDOWS DISC

If you are wondering whether you are allowed to copy your Windows disc, then the answer is "No". The Windows XP EULA does not allow you to copy the disc; however, you should not confuse "copy" and "back up". It is due diligence (and thus highly advisable) to create a back-up copy of your Windows installation disc. Here is the relevant provision from the EULA:
Quote:

YOU MAY MAKE A SINGLE BACK-UP COPY OF THE SOFTWARE. YOU MAY USE ONE (1) BACK-UP COPY SOLELY FOR YOUR ARCHIVAL PURPOSES AND TO REINSTALL THE SOFTWARE ON THE COMPUTER. EXCEPT AS EXPRESSLY PROVIDED IN THIS EULA OR BY LOCAL LAW, YOU MAY NOT OTHERWISE MAKE COPIES OF THE SOFTWARE, INCLUDING THE PRINTED MATERIALS ACCOMPANYING THE SOFTWARE. YOU MAY NOT LOAN, RENT, LEASE, LEND OR OTHERWISE TRANSFER THE CD OR BACK-UP COPY TO ANOTHER USER.

T. USE OF WINDOWS MEDIA TECHNOLOGY

This Windows XP EULA does not grant you any rights to use the Windows Media Format Software Development Kit (WMFSDK) components contained in Windows XP, to develop a software application that uses Windows Media technology. If you wish to use the WMFSDK to develop such an application, visit Windows Media Encoder 9 Series SDK, pass the required validation process, accept a separate license, download the appropriate WMFSDK, and install it on your system.