This could be great news as long as they follow through.  The "virtualization" licensing aspect of Vista still bothers me, but I was equally concerned about Microsoft's "reinstallation" policy with Vista.  Sounds like they might be listening to the grumbling that has been going on.  Who knows, maybe they'll u-turn on their virtualization licensing next.

Quoting The Register

CHIP FIRM Microsoft has done a complete u turn on Vista licensing so people can uninstall the operating system and install it on another machine.

Vole has been progressively watering down its tough licensing policy over recent weeks. Initially it was not going to allow the software to be transferred at all, then last week we reported how it was going to allow one re-install. Now according to the Windows Vista bog, Vole seems to have abandoned the idea completely.

Vista product manager Nick White, here says that the original terms were geared toward fighting pirates. However, Volista has realised that those original terms were perceived as cheesing off PC and hardware enthusiasts.

"You who comprise the enthusiast market are vital to us for several reasons, not least of all because of the support you’ve provided us throughout the development of Windows Vista," White said.

Microsoft "respected" the time and expense they went in customising, building and rebuilding hardware and Vole heard on the grapevine that the previous terms were seen as an impediment to that.

"I hope that this change provides the flexibility you need, and gives you more reason to be excited about the upcoming retail release of our new operating system," he said. It's a moot point whether Microsoft has vision or not, but it certainly seems to lack foresight.

Read the original, here.