Windows for Refurbished PCs are sold as an OEM software, so it will activate only on the initial machine. You cen reinstall it many times of course, but still it will activate only on a single PC.
You can also legallize your current system by going to Start -> Right click on My computer - > Properies. There at the bottom you will see an option to change software key. You can insert the valid one minding the system version of course (Home/Pro/Ultimate).
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If the disc actually came with the refurbished PC it could be valid and unused, or already pre-activated on this computer. You will have to check if the new serial key will activate from the menu I've shown you earlier. If the online activation won't work you can call the Microsoft support and they will inform you if they can activate it (you will have to provide them with an activayion key generated when you choose the phone activation option).
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Officially it is against their EULA to use OEM keys on different machines, but if you upgrade or replace a faulty component you can still use the license.
Anyway, here are some experiences:
I went from a MSI motherboard computer to another MSI motherboard computer (last nov) using the old OEM (win7 x64) key and everything went ok. A friend of mine went from Asus to ASRock and he had to contact MS - he said that his motherboard was faulty and he had to replace it. The customer support guys helped him out and he could use the old key on the new machine. I know a lot of people who used the same MB brand and could activate the old OEM key on the new computer without any problem. Keep in mind that it still breaks their EULA tho, but it works. :P
PS: Don't use the same key on two computers tho.
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If you have a key, you have a genuine copy of windows. It doesn't matter if the key's been used before, it belongs to you now because you have the Genuine sticker.(the EULA may disagree with me on this point) Just activate it. If Microsoft has blocked the key then there's not much you can do, but if it activates then there's no reason not to use it. I've done many upgrades without buying an extra copy of windows. The catch is only the newest install is genuine. (I typically stop using the old machine anyway) The activation prompt will complain that it's been installed on a different computer, but you can validate it by calling an automated system (it gives you the phone number)
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