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You can reinstall the same version of WinXP on the same hardware up to 4 times in a year with no problems. Once you hit that limit, it won't register and you have to call Microsoft. The software gives you the number to call and it is toll free. Once you get a rep on the phone they ask if it's the first time you have installed. If you say "no", they ask why you are reinstalling, you say "because I reformatted my drive" and they will give you a code to type in.
Or, if you don't want to go through all that trouble, back up the "wpa.dbl" file from the \Windows\System32 folder. After you re-install the OS, copy this file back and you should be able to skip activation.
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