Another reason why the validation may fail occurs when the Active X control for the Windows Genuine Advantage Validation Tool has been disabled.
Follow the steps below to make sure the Active X is enabled..
In the first question of the section I mentioned above, it says: Q: I purchased an electronic license and received the product key in email; what do I do?
Microsoft is offering a variety of options to customers who unknowingly purchased a counterfeit copy of Windows XP.
Customers can submit a proof of purchase, the original counterfeit CD, and fill out a report with the details of the purchase and Microsoft will give the customer a complimentary copy of Windows XP.
Windows Genuine Advantage is Microsoft's not so subtle crackdown on illegal piracy of Windows XP and Microsoft Office products.
Microsoft started with an Active X component to force owners of Windows XP to validate their version before downloading security updates.