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My sister claims that Windows Update disabled her daughter's PC.

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I'm a retired teacher. We had a problem with Microsoft not recognizing many of our computers that were built on site or refurbished donations. We used the same Windows disk for all of these and bought license stickers from MS at a huge discount. Every time we had any contact with MS we were told to contact the machine vendor because it looked to them as if the software was pre-installed on a store bought machine.