More news, back on topic...
Microsoft group product manager Barry Goffe told ComputerTimes that Windows XP Service Pack 2 would not exclude pirated copies from upgrading, and that it was more important to keep user safe than to be "concerned about the revenue issue."
To clarify its position, a Microsoft spokesperson told BetaNews, "Press reports indicating Windows XP Service Pack 2 will install on pirated or illegal copies of Windows XP are not entirely true. Prior to installing, SP2 will check the OS' product ID (PID) against a list of known pirated PIDs. If a PID is found to be invalid, SP2 will not install."
BetaNews confirmed the accuracy of the spokesperson's statement with a source within the company.
Source:
http://www.neowin.net