omg yeah >.< i never noticed that sticker before!
Ok, then you can install Windows Vista legally on the machine you don't need a XP license.
Check on the sticker the exact Windows Vista edition, Home Premium, Professional, etc.
Edit: Never mind you can use Windows Vista Ultimate, when you insert your key it will install only the correct version you can legally use.
ok so where can i download it? i do have an external harddrive now or do i need to put it on a disc and run the set up like i did xp?