The short answer is "yes." 
I went through the same thing, although I'd purchased an OEM version.  It
required a repair install to change the product key.
If yours is a full retail version, you have better options. Check this page
http://www.michaelstevenstech.com/xpfaq.html#018
And expand number 18 (should be right at the top) for your options.

Sue Clark
Bristol, ME


> -----Original Message-----
> From: Thomas Chumley [mailto:[log in to unmask]] 
> Sent: Sunday, January 28, 2007 10:23 AM
> Subject: WinXP Upgrade question
> 
> 
> Hi everyone.  I just found this list and think it is
> going to be a great resource!  I have a question about 
> upgrading my wife's computer.  It was given to her when her 
> old one died and already had WinXP Pro installed.  She has 
> been using it for a while and has all her data and programs 
> on it now.  The problem is that the XP on it is apparently a 
> pirated copy so she can not do the online updates.  She 
> purchased a new copy (with SP2) so that she would be legal 
> and could use the online updates.  My question is whether or 
> not I can just install the new copy over the old one without 
> losing all her data and programs.  
> 
> Thanks,
> Tommy Chumley
> 
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