I am a small builder of systems and sell XP with them. I am "required" to stick the activation code sticker on the box I sell. I have also serviced systems from Dell, HP, etc. and most have the sticker on the box/laptop somewhere. The code on the sticker usually works with all XP CDs and does not have to be used with the garbage recovery CDs these guys ship with the systems (which also install all kinds of garbage besides windows for the novice user). It sounds to me as if the person you boughtn your laptop from probably did not have XP to begin with and installed a pirated copy. If so, as others have said, you will be stuck with using an early version of XP with one of the well known activation code keys. If you have already reformatted you cannot recover the original code the guy used, which was probably illegal anyway. If he used one of the "well known" codes, you would be limited to original XP as any SP upgrades check for those keys. Good luck, you might have to shell out a few bucks to become "legal" if you want all the so called benefits.