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Microsoft: WinXP Update Could 'Bomb' Some Computers

Tue Aug 27, 1:27 PM ET

James Maguire, www.NewsFactor.com

In an attempt to reduce piracy of its software, Microsoft has announced protective changes to its Windows Product Activation (WPA) service, beginning with WinXP Service Pack 1. As veteran Microsoft watchers have expected, SP1 will not install if either of what the company calls "two well-known pirated product keys" has ever been used to activate the system. Such systems will also be denied access to Microsoft's Windows Update feature.  According to Microsoft, "the product IDs generated from these product keys are (where X may be any numeric value):

XXXXX-640-0000356-23XXX
XXXXX-640-2001765-23XXX

"The product ID can be found by right clicking on My Computer and choosing Properties and viewing the General tab."

Larger Changes

This recently announced change appears to be an attempt by the Redmond, Washington-based software company to plug all currently known holes in WPA security.  Now, there are three components required for SP1 installation: the previously required product ID, the hardware hash unique to each computer and the product key.  With these three pieces of data, Microsoft will be able to check a product key to verify that is actually owned by a paying customer. This suggests that Microsoft has a list of valid software keys, and that unlicensed key generation will be shut down, or at least lessened.

Access Denied

At the very least, the company has created a new mechanism for battling leaked keys that will likely make it more difficult for software pirates.  Because Windows Update will also be checking keys after October 2nd, Microsoft can deny access to updates even if SP1 has been successfully installed on a system whose key is subsequently found to be abused.  "Service Pack 1 for Windows XP ( news - web sites) will contain fixes to cracks used by software pirates to circumvent activation," the company said. "Installations of Windows XP patched by a crack will require activation after SP1 has been installed."

Different Approaches

Microsoft is taking differing approaches to two different verification problems. The company says it will merely freeze the system state at pre-SP1 for attempted installs using leaked keys. But --­ crackers beware! -- users installing SP1 into patched versions of XP will be bombed.  Industry observers note that this approach suggests that Microsoft knows its market -- that the company understands that the first group of users is more likely to be its valued corporate users, hence, paying customers.  But when it comes to crackers, the company's stance is different. "Microsoft is being more proactive than anyone else," Michael Rasumussen, director of research at Giga Information Group, told NewsFactor, regarding the company's moves toward greater security. "That's why you see more of the aggressive tactics on the Microsoft front."  For its corporate users, an encryption feature has been added, according to Microsoft, "to allow the encryption of the [volume licensing keys] for unattended setups of Windows XP with Service Pack 1."  Customers who place their licensing keys in an unattended setup file will be able to encrypt their licensing keys so that they will be "time limited" and hidden from plain text.

Protected Interests

Microsoft claims the encryption feature for installation does not mean that corporate users will need new keys for existing installations. But the phrase "time limited" implies that Microsoft plans to use disposable keys in the future for greater security.  The software giant, ever vigilant of its market interests, makes the reasons for this new approach clear. This new policy is "raising the bar on pirates" who "have been busy engineering circumventions to digital rights technologies, including Microsoft's own product activation."

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