most software is only licensed for use on one machine at a time.

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... according to the End User License Agreement, which, as it has been proven in American courts, is completely non-binding and invalid. The rights that you have and haven't are described elsewhere, you don't give or get anything by clicking 'I accept'.. You have a right to run software that you have legally aquired. Like I said.

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If you are right then Microsoft is breaking the law with Product Activation. It would be illegal of them to deny you the ability to install your copy of Windows as many times as you want to on as many machines as you want to. I do not think MS would expose themselves to the potential lawsuits and/or government prosecution if they weren't sure they were on firm legal ground.