What will happen if I activate my Windows XP VM?

"You can activate Windows XP a handful (between 2-5, I have had different results) of times on different hardware or a generous amount if on the same hardware as the last activation (I did it at least 10 times without a problem.)

If you have a genuine reason for doing it and reach the limit, ring Microsoft on the free number and they are more than happy to allow you to continue / reset the counter. Activation is annoying and I am against it, but Microsoft have a better implementation than a few other companies and they will only block keys that are massively and obviously abused / overused.

That being said, if it was an OEM edition that came with your laptop and not a fully licensed copy, it would not be allowed for you to install this on a different machine - unless the VM is on the original machine (I guess - as it is running on the machine it was licensed for)... That being said, licensing drives me crazy and I do not know the finer details."

"AFAIK retail copies of Windows XP can only be activated twice. Legally you should have a license for each VM however according to the Microsoft Licensing Agreement. The license agreement only allows one installed instance of the OS.

This entry does a detailed analysis of the Windows XP Home license however it is the same for Windows XP Professional."