Is it illegal to install an OS on a computer you're selling?

Hi, I have an original and valid Win98 SE install CD that I purchased and registered under my name. I used it to install Win98 on my home PC. I have a second PC that I own which I'm planning on selling on ebay. I will not be including the original install CD in the sale but will continue to use it along with the Win98 OS on my home PC. Can I legally install Win98 on this second machine and sell it with the OS installed or is this software piracy?

This would require 2 licenses for that version of Windows, and it sounds like you only have 1. You cannot redistribute Windows (legally) without the recipient having a license to use it, and if you gave them yours you would no longer have the right to run that version on your own computer. -h

Legally, you can't even use it on 2 machines yourself. But who pays attention to that. I would wipe the hardrive before selling it. And I mean wipe, not just format c: /q (which removes nothing). This not only removes the OS, but any files you may have inadvertently left on it.

Well technically that just removes the partition table.. if you have any sensitive data on the drive you should remove it with something like which is free and will overwrite the data. :)

busted 

2 mom and pop sized computer stores here locally got totally busted, selling hard drives that had windows installed on it. that is a HUGE no no, in fact anytime you sell a hard drive, its best to format it, and if you have really sensitive or secret data, you should take the drive out back, take it apart, and sand off the discs with a powererful belt sander, and pour the dust from that into a glass and then pour part of the dust into each of the seven oceans of the world, and then move to mexico.