We expect that nearly all Windows XP users, running genuine or pirated Windows, will have access to the security technologies in SP2. The same users that were blocked from installing SP1 - those that have used a small set of legacy pirated product keys - will be blocked from installing SP2. We believe that there are very few systems in use today that use these keys -- in other words, the pirates have moved on to other keys which we are not blocking.
So how do we charaterize our policy?
We want to make sure that the broadest number of people can install SP2. The nature of malicious attacks on computer users is constantly changing and we will continue to evaluate how we deal with security updates for pirated versions of Windows to best protect our genuine Windows customers.
editors note: This isn't good news for pirates, it's good news for all computer users. Pirated copies of XP often weren't eligible for updates. This left these machines wide open to attack, and they're increasingly responsible for spreading Malware, viruses, and DDOS attacks. Kudos to Microsoft!