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Microsoft's copy-protection scheme works as follows : Windows combines the 25-character CD Key you typed during the installation of Windows XP installation, along with an 8-digit hardware ID (based on values taken from your display adapter, SCSI adapter, IDE adapter, network adapter, memory amount, processor, hard drive, and CD/DVD drive), and then transmits this information to Microsoft. In return, a 42-digit Confirmation ID is returned and used to activate your copy of Windows XP.