Your Advice is appreciated...

[hmmm]

I am about to purchase a second hand Laptop with Windows XP Home Edition.

I have no idea how registration of XP with Microsoft works as I am going to be the second owner and what one has to do about it?

The owner says "I have the windows XP home edition CD as supplied by Toshiba as well as the Utilities and MS Works 2003 CD all with their product keys".

Would you please give me some idea how this work please?

[TJolly]

This is from xphelp:

Understanding activation and registrationThere are important distinctions between activating your Windows operating system and registering it.

Product activation and product registration are not the same. Activation is completely anonymous; it requires absolutely no personally identifiable information to complete. Activation is required and ensures that each Windows product is not installed on more than the limited number (usually one) of computers allowed in the software's end user license agreement, or EULA.

During activation, you can also register your copy of Windows. Registration is not required; however registering your copy ensures that you receive product support, product update information, and other benefits. The process registration takes only a few minutes to complete. Personal information (for example, "contact" information such as an email address) is required if you decide to register.

You have a 30-day grace period in which to activate your Windows product installation. If the grace period expires and you have not completed activation, all features will stop working except the product activation feature.

Notes

If you have not yet activated Windows XP, you can do so at any time by clicking the Windows Activation icon in the system tray to initiate activation. Once you have activated Windows XP, this icon disappears from the system tray.
In addition, there are other ways to open the Windows Product Activation Wizard:
To open a system tools item, click Start, point to All Programs, point to Accessories, point to System Tools, and then click the appropriate icon., then click Activate Windows.
Alternatively, click Start, then Run, and then type "oobe/msoobe /a"..
For more information on product registration for Windows, open the Registration Wizard by clicking Start, then click Run. In the Open box, type "regwiz /r".

[hmmm]

TJolly, thank you for your prompt reply.

[SuperSparks]

Here's an MS article to explain Product Activation:

http://www.microsoft.com/piracy/basics/activation/

AFAIK there's no problem with transferring the Windows licence as long as you get all the original media with the PC. I can't find any MS article on licence transfer though - presumably Uncle Bill can't believe that anyone would want to get rid of their Windows