An updated software that checks whether the user’s copy of Windows XP Pro is a genuine product. Alex Kochis who is the Microsoft director of product marketing and management said in a blog post that the change only affects XP Pro since it is “the product edition that is most often stolen.”
The article at PC World notes the two features in this update. First, the desktop screen background will be black the next time the user logs on his or her system if his or her copy is found to be pirated. The other feature is that it will display a banner which says that his or her operating system is not genuine.
Source: PC World

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That is all well and good until they have another server issue telling people with legit copies that they are bogus.
I’m all for making sure that people don’t steal your software, but don’t accuse innocent people of being criminals.
There has to be a better way.
Is this an automatic download by any chance ? it’s just that i’ve seen a couple of posts in the Newsgroups / forums quoting these exact “symptoms” (black screen and message) and users asking what virus is this?
O.k. Here is a question? I have pro on my laptop. I had to do a new install recently. I updated it with all the updates and now for some reason it will not install updates. I know it is genuine product because it was installed before. I don’t have any black screen or banner. It’s just that every time it want’s to update just errors out. Any thoughts?
@TheCrow: Try just going to Windows Update. I’ve seen it many times where you need to go through its validation (WGA) and, once done, you’re off and running again.
Good old Microsoft at it again. They should look at how Apple does business.