From Microsoft Knowledgebase article Q307890 :
To activate Windows XP by using an Internet connection:
Click Start , point to All Programs , point to Accessories , point to System Tools , and then click Activate Windows .
-or-
Click the Windows Activation icon in the status area of the taskbar.
Click Yes, let's activate Windows over the Internet now .
Click Read the Windows Product Activation Privacy Statement , click Back , and then click Next .
Use one of the following procedures:
If you want to register and activate Windows at the same time, click Yes, I want to register and activate Windows at the same time , click Read the Windows Registration Privacy Statement , click Back , and then click Next .
Type your contact information in the appropriate boxes in the registration form, and then click Next . An asterisk (*) is displayed next to required information.
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If you only want to activate Windows, click No, I don't want to register now;let's just activate Windows , and then click Next .
The wizard establishes a connection with an activation server, and processes the activation request.
When activation is complete and the following message is displayed, click OK :
You have successfully activated your copy of Windows.