OEM is significantly cheaper than retail and you may have a hard time
finding OEM at the high price of $200, or if you do, go elsewhere...quickly.

If there is a disaster as you suggest, simply include the OEM operating
system as part of the computer with the insurance claim.

One of the many reasons OEM is cheaper than retail.

OEM versions of Windows XP:

-- cannot upgrade over an existing Windows installation.
-- must be installed "clean" on a freshly reformatted drive or partition.
-- cannot be transferred to a different computer or if motherboard is upgraded.
-- the license cannot be sold or transferred to another user.
-- are not eligible for free Microsoft technical support.
-- any problems whatsoever with the installation CD or Product Key.
   is not eligible for Microsoft support....you have to deal with the "seller".
-- cost less than "retail versions" due to the above limitations/risks.

Best Advice:  Purchase a "Retail Version" of Windows XP!

You can upgrade or replace defective motherboards to your heart's
content. I have one computer with a generic OEM on it and it's on its
third motherboard. In fact, the only original component on that machine
is the case and one stick of RAM. I have never had to use phone
activation for it as it activated on line every time.

Don't listen to Carey, he always recommends buying Retail and lies about
generic OEM's limitations.

Alias

You don't have to buy OEM, it's a choice, and you assume the
restrictions if you purchase it.

Oh, and if you've paid more than $140 for XP Professional in the USA,
then you were getting ripped off.

OEM software is a term that is taken to mean software that is "married" to
the hardware it was purchased with (as a practical matter the first computer
it's installed upon. It's an industry thing, not just a Microsoft thing.

"Ridiculous" or not, this is one way to buy software less than RRP and the
fact it becomes tied to the hardware it arrived with is a risk you take.

What _is_ ridiculous is the idea that "computer = motherboard". This is
plainly a bad joke, especially when the software can be purchased with other
items of hardware.

It's the single biggest disadvantage of an OEM version, in my view. If the
computer dies, the OEM license dies with it.

An OEM version and a retail Upgrade version cost very close to the same
amount (at least in the USA). The Retail Upgrade is a much better choice, in
my view, since it doesn't come with restrictions.

And contrary to what some people think, the retail Upgrade version can do a
clean installation. All you need is a CD of a previous qualifying version to
insert as proof of ownership when prompted to do so. Even if you don't own
such a CD, it's still worth it buy an inexpensive copy of Windows 98 on
eBay.

Newegg.com and many other online retailers sell the generic OEM XP
installation version.

First and foremost, I do not claim to be a corporate lawyer.  Or, even a
paralegal.

I do know I've gone through 3 different motherboards on on self-built PC.
In each case, I clean installed XP home edition from the same generic OEM XP
installation CD.  Once required a MS phone call.  MS looks at my
installation everytime I connect to the internet.  And, I get autoupdates
from MS.  Based on that, I would surmise that another computer installation
would not be an actual problem.  As long as the previous installation was
never further detected by MS.  This in no way implies or stipulates any
legal ramifications.  Just reality in installation and use of a generic OEM
XP home installation.

Suspect some owners of replies, indicating or implying legal professional
opinions, may not be qualified in such a field.

    Then simply purchase an OS license that is transferable.

    There are some very important reasons that an OEM license costs so
much less than a retail license. OEM licenses are very limited:

     1)  OEM versions must be sold with a piece of non-peripheral
hardware (normally a motherboard or hard drive, if not an entire PC,
although Microsoft has greatly relaxed the hardware criteria for WinXP)
and are _permanently_ bound to the first PC on which they are installed.
 An OEM license, once installed, is not legally transferable to another
computer under any circumstances.  This is the main reason some people
avoid OEM versions; if the PC dies or is otherwise disposed of (even
stolen), you cannot re-use your OEM license on a new PC.  The only
legitimate way to transfer the ownership of an OEM license is to
transfer ownership of the entire PC.

    2)  Microsoft provides no free support for OEM versions.  If you
have any problems that require outside assistance, your only recourse is
to contact the manufacturer/builder of the PC or the vendor of the OEM
license.  This would include such issues as lost a Product Key or
replacing damaged installation media. (Microsoft does make allowances
for those instances when you can prove that the OEM has gone out of
business.)  This doesn't mean that you can't download patches and
service packs from Microsoft -- just no free telephone or email support
for problems with the OS.

    3)  An OEM CD cannot be used to perform an upgrade of an earlier
OS, as it was designed to be installed _only_ upon an empty hard drive.
 It can still be used to perform a repair installation (a.k.a. an
in-place upgrade) of an existing WinXP installation.

    4)  If the OEM CD was designed by a specific manufacturer, such as
eMachines, Sony, Dell, Gateway, etc., it will most likely only install
on the same brand of PC, as an additional anti-piracy feature.  Further,
such CDs are severely customized to contain only the minimum of device
drivers, and a lot of extra nonsense, that the manufacturer feels
necessary for the specific model of PC for which the CD was designed. To
be honest, such CDs should _not_ be available on the open market; but,
if you're shopping someplace on-line like eBay, swap meets, or computer
fairs, there's often no telling what you're buying until it's too late.
 The "generic" OEM CDs, such as are manufactured by Microsoft and sold
to small systems builders, don't have this particular problem, though,
and are pretty much the same as their retail counterparts, apart from
the licensing, support, and upgrading restrictions.