Well, this is getting interesting. I called the evil giant today and asked about this, and within 2 minutes I found myself connected to their software piracy experts (Note: the hold for T.S. with Microsoft is interminable, but when it comes to suspicions of piracy, they sure answer the phone real fast!

). Anyhow, I found out that indeed, many of the big OEMs are now doing this thing with just providing the buyer with an OS "Restore CD". The rep mentioned Dell, Compaq, HP, etc. Now here's where it gets good - he asks for the OEM of my system - I tell him Micro Electronics, Inc. (this is the parent company of MicroCenter, WinBook, etc.), and whaddaya know, they are NOT licensed by Microsoft to be doing this, according to the rep. Uh oh ...
Anyhow, I thought maybe it would be my lucky day, and maybe MicroSoft would give me a legit OEM copy, or perhaps offer one for a reasonable fee. Instead, the rep offered to send me some literature on fighting software piracy. Sheeeeeeesh ..... :|
As for these "versions" being upgradeable, etc., I never got a complete yes or no from them. The only thing they would say was that I would not be able to extract file(s) from the CD. DUH!
So, looks like I will return this sucker. Too bad, was a pretty good deal, or so I thought.
Thanks for all the answers/opinions from you folks ...