It looks like folks are illegally exploiting a loopole in the SP1 update DVD to install Vista on XP/2K machines.
http://www.pcworld.idg.com.au/index.php/id;394829271;fp;2;fpid;1Microsoft continues to give its tacit blessing for consumers to exploit a technical loophole that allows them to upgrade to Vista with Service Pack 1, even if they don't own the necessary prior editions of Windows.
The loophole, which was also present when Vista was first released last year, allows individuals undaunted by Microsoft's licensing and installation rules to save up to US$110 by purchasing a DVD upgrade of Vista SP1, rather than the full retail one.
To install an upgrade version of Vista, users are supposed to have Windows 2000 or XP already running on that computer.
Experts say Microsoft is giving its quiet blessing to the loophole in order to boost interest in Vista among the tech-savvy users likely to exploit it.
"The fact that the upgrade edition will still upgrade over itself in Vista SP1 proves that Microsoft executives knowingly support the upgrade trick," said Brian Livingston, editorial director of the Windows Secrets newsletter, which confirmed the trick in an article appearing in its Thursday edition.
"I think the feature was deliberately included to make it unnecessary for more advanced and price-sensitive users to ever buy the full version. There is no ethical dilemma with people using a feature that Microsoft has specifically programmed into Vista."
I think I stated some time ago they would end up at some stage giving this dubious operating system away, after all who wants to purchase DRM-ridden crap.
