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Functionally, there is no significant difference between the OEM and full retail versions of XP.
Sometimes, the OEM versions have more additional software on them.
On a practical basis, there is a significant difference in the terms of the license.
For the OEM version, you are technically limited to installing it on 1 set of hardware ONLY.
You are not allowed to remove the OEM version from the PC and install it on another PC.
With the retail version, you are allowed to remove the software and install it on another set of hardware.
OEM in most cases does’t receive the support. If you ever want to upgrade most OEM software does not come with the CAB files, and therefore will not allow an upgrade. Dell sells an OEM that does qualify, however they are the exception.