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Microsoft is changing the shape of Windows XP in the countdown months before its scheduled release. The latest--and welcome--shift is the reviled antipiracy technology, which critics had charged would unfairly hinder users who change the configuration of their PC.

Windows Product Activation, a technology first tested in Microsoft's Office product two years ago to cut down on the casual sharing of software, has been included in test versions of its upcoming Windows XP operating system to prevent it from being installed on multiple computers.

The activation process works by "locking" the software to the configuration of a computer and the 25-character product identification number included with each version of the software. Under that plan, if a user altered a PC's configuration too drastically--such as installing a new hard drive--Windows would identify the action as being installed on a new PC and would require the customer to reactivate the software by reporting the changes to Microsoft.

The technology is intended to cut down on the estimated $12 billion lost worldwide to piracy each year. But it drew the ire of many users who commonly upgrade the hardware on their PCs.

"This was based on feedback that we've been getting from the users testing Windows XP," says Charmaine Gravning, a product manager with the Windows XP division.

Upgrades Allowed

A major change in the activation tool, included in Release Candidate 1 of the operating system, lets users make a certain amount of hardware changes but still be able to reactivate the software without having to notify Microsoft.

"We're giving users a time frame (from when they first activate the operating system) where they could do a certain number of changes," Gravning says. Microsoft has not yet decided how many times a user can reactivate the software this way, or how long the window will last, she says.

But the new process does have some holes. Microsoft confirms that one could theoretically install the software on a separate machine and reactivate it under the guise that it is the same PC with a new configuration.

"That would be illegal, though," Gravning notes.

It's only the latest change to the prerelease Windows XP, which is scheduled to ship October 25. First, Microsoft agreed to let PC vendors remove Internet Explorer from the desktop and even from the system. Soon after, it struck Java support.

Although the preferred music format for Windows XP remains Microsoft's own WMA format, Microsoft has made a nod to the competing and popular MP3 format by cutting a deal with three vendors to offer add-ons so you can rip CDs and save files in MP3 format.

Still Eager

For those who don't make major overhauls to their PCs, the product activation software hasn't had much of an impact on whether to upgrade.

"I think that Microsoft did a pretty good job of convincing us that it will not be difficult or very odious to do," says Butler Crittenden, president of the San Francisco PC Users Group. "I can't see an instance where it would be too inconvenient."

Microsoft says privacy has always been a concern with the product activation program. The process is done anonymously and is not related to the product registration process, which asks customers to register their personal information with Microsoft. For the product activation, users are asked only to enter the country where they live, so they can get the correct phone number to call to activate the software by phone, Microsoft says. Activation can also be made online.

Microsoft will further clarify the product activation process so it is not confused with the registration process, Gravning says.

"We did some polishing to the user interface just to make it easier for customer," she adds.

Users can use Windows XP for 30 days before they are forced to activate the product. Until a user activates the software, a screen will prompt them to do so. Near the end of the 30-day window, the prompt will appear every 15 minutes while Windows XP runs, Microsoft says. If it is not activated after 30 days, the software reverts to a print- and view-only version.

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