Windows XP Embedded Licensing

We currently have a client that runs 300-400 Windows NT boxes working off a Windows NT server, this is a Point Of Sale system that uses our own customer built software, we are now in the process of re-design and so forth.

XP Embedded sounds like the best idea for the new operating sysem on each of the display PC's and I do have the evaluation CD here and have experimented with it last year, however, reading small print, it says that XP Embedded must not be used on a real PC. I am currently using old Dell GX110 Pentium 3 with the Windows NT boxes for the display, the client is hoping that we don't have to trash them as they will run our new app, it just getting the licensing right.

The system is IP based and requires no direct or phisical registration with the server, the server will find the display over an internet/intranet.

So, XP Embedded on all the displays with Windows 2003 Server offering, can I do this?

Any thoughts on Client Access Packs?  Device licensing?
What do I need?

(Appart from a 3rd party webhost offering a solution over the internet)
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Dell GX110 Pentium 3 sound like a real PC for me, thus not eligible for Windows XP Embeded licensing.

To be eligible for Windows XP Embedded the device should be custom-build and good only for the application it was developed to do.

If you build custom boxes that can be only point of sale posts that OK, but if it is based on a commercial PC i'm afraid the answer will be no.

You can read the following article from Microsoft:

Hope that helps,
DaveRowlandAuthor Commented:
yes, that is true and i did know that.  I just was looking for some other XP embedded builders for their advice.

The other part of the question:-

Any thoughts on Client Access Packs?  Device licensing?
What do I need?

If a modern server (2003) has 400 or so computers connected to it WITH ONLY A CUSTOM MADE TCPIP PORT PROTOCOL and FTP CONNECTIONS (not networking sharing and other file sharing windows bits) and we was using general Windows XP, do I need Device CALS?, Client Access Packs for the server?  Whats the current state of all that?

How is 'per seat' termed anyway?  Does it means sofa in front of a computer?

And "Client Access", I have no clients in this scenero as the 400 computers dont have operators, they are 'display' computers.
look at the following link, it might help

per seat license
A software license based on the number of users who have access to the software. For example, a 100-user license based on users means that up to 100 specifically named users have access to the program. Per seat licensing is administered by providing user-level security to the directory containing the program.

Winows 2003 CALs

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