Can I "transfer" the licence from one machine to another ? 

In case, something bad happens to my desktop and I buy a new one then - Can I activate the same product key on the new one ? I don't mind to call Microsoft and tell them to discontinue the old machine. Is this a valid option ?

Cheers.

I depends on your license.

OEM license that comes with notebook is not transferrable.

RETAIL ("box") license is transferrable.

OEM and RETAIL aims at ONE computer.

There are some special licenses that are for organizations. If you are member of organization that obtained multilicense, asl license administrator for detailed conditions.

Without knowing more detailes it is hard to give any more detailed advice.

Regards

Milos

Hi Milos Thanks for the reply. I appreciate it. Yes I agree that it depends on the type of licence. (Doh ! I should have specified it in the initial question itself) Well, it is a retail "box". The OS didn't come as a preinstalled on the desktop (as I assembled it). I use this machine at home. So, is this license transferable ?

Hi,

The answer is yes, for retailed key, we can use it to activate the same system on another computer.

If the online activation failed, you can call activation center:

How to activate a Microsoft product by using Microsoft Product Activation Center
http://support.microsoft.com/kb/950929