This is part of why i spent $199 to get Technet so i could be legal and do things right. I need an answer to this badly. There is no reason this key shouldn't work. It says XP home and that's what I have installed.
BTW, phone activation fails, too.
I had some issues with the phone activation as well; you get to speak to a live representative & then they hand you off to a "machine" that reads the number s out & you type them in.
It fails, I call back & we go through the same routine. I went through this three times in a row, finally got fed up with it & informed customer that they would have to purchase the actual restore disks from HP (in one case). We did that & all went smoothly. Obviously this won't work in all instances, but it did get me out of the woods a few times.
BTW, mine fails at the point when I activate online, usually not during the install, although I have experienced that a few times...
@ SimonZerafa - you are correct, the letters/numbers can be mis-read, but I am certain I had them correct.
I'm guessing it is all part of Microsofts attempts to crack down on piracy; make the install fail so you need to purchase another cd.