With all due respect I do not see how you interpret the EULA to mean that
multiple booting is fine. It says "one copy on one computer" . I interpret
one to mean one. If you have 2 partitions and plan to dual boot you would
install two copies on one computer. If you use the same license to install
to each partition you would be installing two copies of the same license to
one computer which the EULA clearly states is a violation.

Some weeks ago I raised the question of bootable partitions in XP, wondering how Micro Soft would react to an attempt to 'activating' XP more than once i.e. one time for each bootable partition.  I also said if/when I found some answers I would report accordingly

1. I tried to get a definitive answer to the question using their E-mail enquiry service.  All that happened was each of 3 responses just referred me to a different service and failed to answer the question
2. I purchased Partition Magic V8.0 from Symantic who has taken over the original Power Quest company, read the manuals and concluded that indeed up to 4 bootable primary partitions could be created, 2 of which would meet my needs and that the included Boot Magic would allow the desired OS to be booted
3.  That was the good news!  The not so good news was that Boot Magic needed a separate 50MB FAT32 FS partition to work, there was a 'barrier' at 8GB which apparently prevented the two contiguous partitions of some 80GB and 40GB being created as I wished.  There were also several limitations on how PM and BM could work with some other Symantic software such as Internet Security "004 and System Works 2003 which I use
4.  I posted a few questions to Symantic to enquire if I had understood the various problems correctly but after a week of silence decided to scrap the idea of partioning the HD at all and invested in another 120GB drive and caddy (the new PC HDD is mounted in a caddy) and just installed the required software in that
5.  This worked fine, there was no problem in 'activating' XP again with the new drive so I achieved my desire to keep 'normal' PC operations and 'games' completely separate and if I had chosen to do it in the most economic way the cost could have been little more than the cost of Partition Magic!
6. Two days ago, I eventually received an E-mail response from Symantic!  My questions were misinterpreted and the answers offered dfailed totally to answer the questions asked!  I assume my interpretations were (at least near enough) correct and while several bootable partitions are feasible with XP and NTFS there are still limitations which make it (for some applications anyway) unactrative
7. On the activation of XP it does seem that so long as it is installed in only one PC you can have as many partitions or HDD's as you wish and each can have its own copy of the same XP activated.  The criteria are that the PC is identified by some 7 key components e.g. the processor, sound card, video card etc. by serial numbers which are all identifiable during the on-line activation process by Micro Soft and so long as 4 of the 7 are the same the PC is deemed to be 'the same' and activation approved.  If too many of these key components are changed, however, activation is not automatic and some 'haggling' with MS may be needed to convince them their precious XP is NOT being pirated

I hope this long explanation will be read and be of some help to others

Chris