Very sorry to say this, but the best way is to format your
Hard Disk and reinstall the legal version
Has something to do with the activation procedure and the
hardware configuration.
Is it really neccessary to destroy your programs and documents? Why
wouldn't it suffice to install the legal copy into a different
directory (say, "winxp" instead of "windows") and then, once you've
booted into the "new" Windows, take ownership of the old windir and
delete it? That wouldn't be so... lossy. Or delete the old windir
first. Shouldn't a full (not repair or upgrade) installation start
out "fresh" with regard to activation/hardware configuration?