Michael D. Alligood wrote:
The answer to you question is probably not one you want to hear but,
you cannot transfer or install the OS to the new PC. You will have to
purchase a licensed copy to install on the new computer (full retail
version)

*Do* get your facts straight before posting. Where in his posting did he say
the old computer 'came with XP'?!

1) If the licence on the old system is OEM then, yes, it's tied to it
forever.

2) If the licence is an upgrade it's only valid as long as he still has
the *original* qualifying product.

3) If he does have the original QP, then he can, quite legally, transfer
it to the new system. He simply has to boot from the XP CD and insert the
qualifying media when prompted.

But, if it does transpire to be OEM then, yes, you're perfectly correct.