Microsoft WindowsXP activation is Microsoft's way of making sure that their software is only installed on one computer and only one computer. It forces you to activate (or register) your software once it was installed, at which time it sends information about your hardware profile to Microsoft.
If you try installing it on a second machine, when it asks you to activate, it calls up Microsoft and checks to see if the hardware profiles match. Because all hardware is unique, even if it's a duplicate of the exact same hardware, etc. the hardware profiles won't match.
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