Windows XP - OEM or retail

I'm collecting parts for my first pc build. I'm getting WIndows XP - understanding I will upgrade to Vista at some point un the future. I know OEM is a lot cheaper than retail, and my understandng is that OEM would be limited to the pc I build and intall it on. Is that true? Are there any other pros and cons to OEM versus retail for Windows XP?

I'm collecting parts for my first pc build. I'm getting WIndows XP - understanding I will upgrade to Vista at some point un the future. I know OEM is a lot cheaper than retail, and my understandng is that OEM would be limited to the pc I build and intall it on. Is that true? Are there any other pros and cons to OEM versus retail for Windows XP?

Yes, an OEM OS is limited to the hardware it is initially installed on. So if you swap out your mobo or replace a hard drive at any time after installing OEM Windows, you are then supposed to buy another copy of Windows. OEM is a great way to save a lot of money, but it is best for people who either:

1. Don't plan on changing their hardware

or

2. Plan on getting a different OS before they do change their hardware

Depending on when in the future you want to upgrade to Vista, that will determine whether or not to go OEM. If you will probably upgrade or add in new hardware components before you get Vista, you should get a retail copy of Windows. But, if you plan on getting Vista soon after it's release, you might as well just stick with OEM.

I personally stuck with OEM WinXP Pro for my computer, because I plan on upgrading to either WinXP 64bit Edition, Linux (not sure which v. just yet), or possibly (but most likely not) Vista.