Windows XP is Microsoft's first operating system for home users based on its crash-proof Windows NT code base. It includes consumer-friendly features like instant messaging and drag-and-drop CD burning.
The operating system can be downloaded as a 600-MB CD image, which is easily burned onto a blank CD.
The software includes the antipiracy Activation feature, which must be circumvented, but a corporate version of Windows XP -- which does not include the activation feature -- was posted to newsgroups last week.
The corporate version is designed for large corporate customers with site licenses to install the software on hundreds or thousands of computers across the company. It has no Activation feature to disable.
For pirate copies that include the Activation feature, there are several XP cracks that can supposedly disable it.
The new Activation process is supposed to cut down on software piracy by allowing the operating system to work only on one registered machine.
Activation requires the customer to connect to Microsoft, either over the Internet or the phone, to activate the operating system.
The Activation process automatically ties the computer to the newly installed operating system based on the machine's hardware.
If attempts are made to install the same copy of Windows XP on one or more machines, the new installation can't be activated. In addition, Windows XP has a 60-day limit to be activated. After the time limit, it won't work.
The XP cracks floating around the Internet claim to either disable the Activation feature or circumvent it.
One crack claims to reset the computer's internal clock so Windows XP constantly thinks the user has 60 days to register the software.
Another claims to disable the Activation feature entirely. The patch, which is 13 MB in size, purports to replace files that need to be activated with non-activated versions from the corporate edition.
Some of the hacks are fairly complicated, requiring file installations and edits to the Windows registry.
Windows XP comes in two versions, a Home and a Professional edition. Only the Professional edition appears to be available on the Internet.
Microsoft, however, claimed that none of the cracks work.
"I have not seen a (copy of Windows XP) that has a crack for it," said Allen Nieman, product manager for licensing technologies at Microsoft.
Nieman also claimed that one of the cracking programs was mined with viruses.
The pirated version of XP Professional likely originated from an advance copy sent to the press for review, Nieman said, but there was little Microsoft could do about it.
"It's a tough call. What do we do, chain it to people's desks?" he said. "The fact is we're not trying to stop piracy. If I said that, people would laugh me out of my job. But I think it is possible to reduce piracy."
Ironically, the internal build number assigned by Microsoft is 2600, the name of the infamous hacker quarterly 2600, which was recently prosecuted for linking to DVD-cracking software.
Nieman acknowledged that the Activation feature painted a big bull's eye on Microsoft.
"I would say in the cracker underground there's some brownie points to win if you crack Windows XP," he said.
Microsoft watchers aren't surprised that Windows XP was cracked, just that it happened so quickly.
"It's not surprising that people would immediately try and crack it, but it is somewhat surprising that it seems so simple for them to do," said Tim Bajarin, president of Creative Strategies in Campbell, California. "You think they would have the software expertise to make it a little tougher to crack the protection."
But Bajarin didn't expect Microsoft to sit back and accept the piracy.
"You will probably have continuing volleys between Microsoft and hackers until someone gives up," he said.
