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Need advice on cloning obstacle - SLIC

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I've run into an issue where computers from major manufacturers use something called SLIC which prevents you from successfully cloning from one manufacturer's PC to another. I've done some research on this and the only solutions I can find come from pirate sites.

Is there some legitimate way to deal with this?

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Strictly speaking, the only legitimate solution is install retail Windows on the source computer before clone, because this copy of windows is licensed to use only on the source PC. This includes not only microsoft files, but everything from the original installation. Another solution, that you may have encountered on pirate sites, assumes that the target originally comes with OEM windows of the same edition.

The source computers all run XP Pro. I assume I can no longer get that.

If I get retail copies of Win 7, do I have to do a fresh install of the OS, which means reinstalling and configuring all the software?