if you navigate to I386 folder on your xp, you can find eula.txt file and read it. item # 4 states: 4. TRANSFER-Internal. You may move the Product to a different Workstation Computer. After the transfer, you must completely remove the Product from the former Workstation Computer. Transfer to Third Party. The initial user of the Product may make a one-time transfer of the Product to another end user. The transfer has to include all component parts, media, printed materials, this EULA, and if applicable, the Certificate of Authenticity. The transfer may not be an indirect transfer, such as a consignment. Prior to the transfer, the end user receiving the transferred Product must agree to all the EULA terms. No Rental. You may not rent, lease, lend or provide commercial hosting services to third parties with the Product. so, this means that if you decide that you want to get a new pc, and want to install xp on the new machine, you can do that.