Yup, in the foot. It's AMAZING.
The official MS site gives out .PDF files for searched products:
http://www.microsoft.com/About/Legal/EN/US/IntellectualProperty/UseTerms/Default.aspx
I downloaded the Vista Home Premium E.U.L.A. and screenshot this attached photo.
As I understand it, XP is still okay for VM. Don't yet know about 7.
(-: Chas.M. :-)
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