daveschroeder said:This is incorrect.
Microsoft's Vista EULA says:
4. USE WITH VIRTUALIZATION TECHNOLOGIES. You may not use the software installed on the licensed device within a virtual (or otherwise emulated) hardware system.
This means you can't use the *same* installation of Vista Home inside a virtualization technology on the "licensed device".
I am not a lawyer. However, direct reading of this does not indicate that. Once you install Windows on a machine, inside a VM or otherwise, the device on which it is installed is licensed.
IMHO, the angle Microsoft is going for here is that within a VM you can very easily defeat their Activation controls (activate to the VM, then clone the VM instance a hundred times and all copies are then running activated). It's all about reducing piracy, because MS is absolutely paranoid about piracy. They'd cut off their own left arm if they thought someone might use it to steal a copy of Windows.