HardOCP has posted some of the facts regarding the anti-piracy measures built into WindowsXP.
Windows Product Activation DOES NOT require you to get a new product key every time you want to reinstall/format windows. Not the first time you reinstall, not the 8 billionth time you reinstall. (You have to go through the Activation process, but you are passing the same AUTH string to the clearinghouse, it NEVER counts against you. There is no timeout for reinstalling Windows against the same hardware, or several future hardware upgrades.) Activation takes less than 10 seconds on a 56k modem, or 5 minutes on the phone with a telephone representative. It also takes place before ANY personal information is even entered.Read more