I have a related problem.
My buddy has a laptop with XP pro which is probably pirated. A former associatate "helped" him a few years ago. He gets a message that he is using a leaked VLK or something like that.
I bought a legal OEM copy of Win XP Pro at tigerdirect and told him the code. He reports that when trying to update it using magical jellybean that it is invalid.
I suspect the OEM thing is the problem and he is remote so I really do not want to reinstall Windows. Is there some other way to force it to use the new, legal OEM code?