If its OEM System Builder license, then it is just like retail license but less expensive. Yah, its a loophole. Thats why Microsoft closed internet activation of (legal) OEM:COA keys.
AFAIK - from what I have read, its only the XP coa keys that have been deactivated but a simple phone call would allow a user to activate their COA key for XP. I am going to try using one of my Win 7 Home Premium COA keys to see if they will activate.
I only mention that internet activation is blocked. You can activate via phone (but only one time afaik).
so my driver came and the box is small it says OEM System Builder Pack / Intended for system builders only any limitations on this? if I buy a new laptop in the future can I remove it from my current system and install it on another system? pls provide some details
It's an open system, NOT based on manufacturer. So you could use it on any branded or even own build computer with no problems. Main difference is that MS will not do real Product Support for that OEM Versions. Normally it's the System Builder who'll have to take over the Product Support for MS OEM Software because the nature of those OEM Products (Software) say's so very clear in the License terms. In real life that differs for those product's which MS is selling to small "System Builders", even don't know those product's are used in any mean by an System Builder, instead used by any private person. You'll have to read the "fine" print and License which came with that product for to see hwat Limitation you bought with it as well!! Anyway, I wouldn't bother with that and just use is like an normal "Full" version!
It possible more often using Phone Activation! Even if the Computer is changed, just need to explain that you changed the MB and viola: done! I done so several times vial the Singapore and Indian MS Activation Center, just was need to real talk to an MS Staff some times!