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How to Legaly P2V an XP OEM Machine

Last Modified: 2012-05-10
I know you can't legally do it out of the box, and that I'd need to upgrade to a full retail copy.  

At least that is my assumption, am I right? (LEGALLY!!!)

Does anyone know of a best practices type of document (preferably from M$ or VMware) that outlines how this should be done?

My initaly thoughts are so:
1. P2V the machine
2. Follow the instructions found here to convert it to a retail copy:
3. Run windows product activation.  

If I do this will it affect any of my installed applications?

How does that plan sound?

If you have any other insights I'd appreciate hearing them!
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