Hope no one else has posted it but funnley enough after all the stuff about SP1 on neowin and the thread deletions and warez and so forth its in a story titled MS turns up heat on warezed WinXP copies
Quote -
But a sharp-eyed reader of Neowin.net has spotted what appears to be an escalation of the role of product activation. The privacy statement now says "To provide you with the appropriate list of updates, Windows Update must collect a certain amount of configuration information from your computer. This information includes: Operating-system version number and Product Identification number... The Product Identification number is collected to confirm that you are running a validly licensed copy of Windows. A validly licensed copy of Windows ensures that you will receive on-going updates from Windows Update."