Windows XP Upgrade edition questions

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I know that you can use the Upgrade (retail) version of Windows XP if you have Windows 98/98SE.

What I would like to know is:

1. Does it matter if the Windows 98 you have is OEM, or does it have to be retail?
2. Can you do a clean install of Windows XP, or do you have to install 98 first and then install XP over the top of it?

Thinking about question 1, presumably given that the OEM version of Windows 98 would be licensed for use on one single machine only and not transferable to new machines, you wouldn't be able to install your Upgrade version of XP on unlimited different machines (but one at a time) either?
 
Not sure about 1, but you can do a clean install just like the non-upgrade edition. It just askes you to put a Windows 95/98 disc in during installation to verify that you own a previous version of windows.
 
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I had a feeling you could do that :) I just have a suspicion it won't like OEM Windows 98 though.

The reason I am asking is because I want to use Windows XP when I next upgrade my PC. I am currently using an OEM license which will not be transferable to a new machine of course. Given that XP is being discontinued in about six months, I will be buying it some time before then (even if I don't actually use it for a while), while I still can.

It occurred to me that it might make more sense to buy the 'retail' version so that I could use it for future, subsequent new machines in future. XP Home retail is £150 odd, and XP Home upgrade is half that. I'm thinking that buying Windows 98 cheaply might be a cost-effective route to getting XP Home retail.

I do actually have a Windows 98 'system restore' CD from an old Packard Bell machine - I wonder if I could use that to satisfy the XP Home Upgrade installer?
 
To answer number one, it can either be OEM or retail.
Number 2 was answered by drexel and as for the tranferability:

From the sticky that nobody reads said:
What is the different about an Upgrade License?

The upgrade license is available to user who has a previous qualifying Windows product and withes to upgrade to the current version. Because you are using the same product, you are generally rewarded by having a cheaper upgrade license then a full retail or OEM license. To use a Windows upgrade CD, you must have either a genuine previous version on accessible media such as a CD or DVD or have an existing installation. You must have a legal and licensed version of the previous version for the upgrade to also be legal. If you have an existing installation, all of your current settings and applications will usually stay intact unless there is an incompatibility. The upgrade license is transferable, but the software must be removed from the previous machine and the new machine must also have a license for a qualifying product for the upgrade to be valid.
 
That seems to mean that Windows 98 OEM would only allow me to install XP Upgrade on one machine then. To install the XP Upgrade on another machine in future, I would need another, separate Windows 98 license. Correct?
 
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