beardy - did you buy an upgrade disc seperate from the new PC? If this is what you did then I did exactly the same thing and managed to install XP onto both my PC and my laptop. Just went through the activation two times. I can't remember whether there was a month or so between activations because something way down in the back of my mind tells me that they WILL allow you to activate a second time after a month or so...... Think that's to cater for the fact that they understand re-installs are required from time to time.
Stands back waiting to be corrected.......