Update: In August 2005, Microsoft changed its OEM licensing rules, eliminating the silly requirement that you had to buy a trivial little piece of hardware along with an OEM operating system. Now, anyone can buy an OEM version of any Windows operating system, including Windows XP Media Center Edition 2005, if they are a “system builder.” And the rules of the System Builder program specifically state that a hobbyist qualifies, without having to join any organization or pay any fees. For more details, see this post.
Michael Creasy answers some questions on his blog and gets one wrong:
I’ve seen the Media Center software for sale online is it OK to buy it? I’m no lawyer so I’m not going to comment on this. Media Center is an OEM product and only available with new PCs is the official answer though.
Sorry, that’s not true. I covered this topic earlier this year in a post entitled Everything you always wanted to know about Windows Product Activation. Yes, you can buy an OEM copy of Windows XP with a new PC. But you can also buy your own OEM copy of Windows XP if you purchase it with a “non-peripheral computer hardware component.” Qualifying products include memory, internal drives, mice, keyboards, and power supplies/cords. This type of OEM license includes a CD, a Certificate of Authenticity, and a product key, and it requires activation.
There are many vendors who will sell you an OEM copy of Windows XP Media Center Edition. Just buy an appropriate piece of hardware with it and you’ll be fine.
(I’m pretty sure Michael works for Microsoft, but there’s no bio on his site, so I don’t want to assume.)
Update: In the comments, Thomas Hawk confirms that Michael works for Microsoft in the Media Center group. (Thanks, Thomas!) Thomas also suggests that selling an OEM copy of Windows with a small piece of hardware might somehow be against the “official” policy but that Microsoft winks and looks the other way.
That’s not correct. The “official” policy is exactly as I stated it: You can legally purchase an OEM copy of Windows XP with qualifying hardware. This is not a wink-wink, nudge-nudge deal. This is an explicit, documented part of the license terms. Read it for yourself (link to PDF copy of OEM license):
If the individual software license is a desktop operating system (including Windows XP Media Center Edition), we grant you a nonexclusive right to distribute individual software licenses; provided that each one is distributed with either (a) a fully assembled computer system or (b) a nonperipheral computer hardware component. A “fully assembled computer system” means a computer system consisting of at least a central processing unit, a motherboard, a hard drive, a power supply, and a case. A “nonperipheral computer hardware component” means a component that will be an integral part of the fully assembled computer system on which the individual software license will be installed.
Several Microsoft documents make it clear that any component that is an integral part of the PC qualifies, including an internal connector for a hard drive or an external power cord. This online chat with members of Microsoft’s System Builders group, from February 2005, is explicit on the subject:
Q: [P]lease elaborate on what nonperipheral hardware is. The OEM site lists power supplies/cords as examples implying it is legal to sell with an internal P4 power adapter or external power supply cord.
A: If you look at [the System Builder site] it states that a power code [sic] is and examples of non-peripheral hardware. … Non-peripheral is something that is essential to the functioning of the PC – so a power cord would qualify.
There are many other, similar references on Microsoft pages, most of which are available only to registered members of the System Builder program. The products I mentioned above (memory, mouse, power cord) are specifically mentioned as acceptable qualifying hardware.
So go ahead. Buy an OEM copy of Windows XP Media Center Edition. You don’t need a secret handshake, just a valid credit card.
PS: Everything in this post applies to Windows XP only. None of this information applies to Microsoft Office. The only legal way to purchase an OEM copy of Office is with a new PC!
Read more on this topic here.
Ed Bott 
Michael actually does work for Microsoft and is a developer on the Media Center team. I met him at a Scoble dinner in San Francisco last year.
I think what Michael is saying is that “officially” the party line answer is no, but by merely bringing it up “unofficially” just between us kids, wink, wink, you might want to check it out.
Of course you can and it does work.
Hmmm… Very interesting…
I’ve bought two copies of MCE recently from a . The first time I happened to be buying a motherboard and a few other components, so I didn’t think anything about it.
The second time, all I bought was a copy of MCE and an OEM MCE remote. I’d wondered if they’d let me purchase it that way, and they did.
After reading this, I remember that both orders included a “freebie” — a hard drive “Y connector” for power. About $0.25 worth of occasionally handy hardware, and I tossed them both into my parts bin, but I was kind of confused as to why they included it. I guess this qualifies as a non-peripheral part though…
oops — that was supposed to read “from a well-known online vendor”
If we had purchased Computer alongwith Widow XP license copy in July 2006 , and if that time we had not put MS Office software like , Word , Excel Etc in our Computers, can we purchase OEM Copies of MS Office software in July 2009, If yes give me detail and if no , give me reason for that.
No, OEM copies of Office can only be sold WITH a new PC. That is your one and only opportunity to purchase an OEM copy at the discounted price. It must be preinstalled by the seller.