The licence would be invalid, so you should buy a new copy.
On the technical aspects, it hugely depends on the hardware from the previous machine to the new one. Vista is much better at doing this than XP though.
If you bought windows 7 retail, that would sort the issue. An upgrade with that might also sort the hardware change issue, but I would take an image of the drive before you transfer it and make sure you uninstall drivers beforehand.
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