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Q. What is an OEM Version of Windows?

A. OEM = Original Equipment Manufacturer = a company that makes/markets computers (and parts), etc. which include parts made by other companies, and not the “original” manufacturer as OEM implies, just masquerading as one. Licenses of OEM versions of Windows, etc. software are sold to computer manufactures for installation on new computers. They are full versions of Windows. They are widely available on the "grey market" and Internet and cost considerably less than retail full versions. Just be careful not to purchase a pirated copy.

Edit: Looks like I was wrong, go ahead and buy it :)

Q: What's the difference between this OEM version of Windows XP and the version that is sold in stores?

A: The OEM versions are designed to be sold to system builders, so they have minimal packaging and they only allow you to perform a full install, not an upgrade of your current operating system. Once installed though, they work EXACTLY like the more expensive retail versions.
 
Also, unless you need the corporate networking stuff, the Media Center Edition is the exact same as Pro but about $20 cheaper.

You do have to take the 2 MCE CDs and burn them to DVD for it to work with BootCamp… So it is a little more in depth to get it working. :(
 
I just saw that the home edition is only $84. Would home work well, I don't need all the extra's of pro.
 
I have the very same OEM XP Pro disk installed on my iMac as I am typing this. The OEM Version works just like it should. Go ahead and buy either that or home. (Pro just has added network, security and pref/tool extras stuff like that;) )
-dsm
 
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