Many companies try to restrict you into making only one backup.
To make a backup of the installation CD of Windows XP is legal.
Wether you make one copy or ten copies, this should not make it illegal.
If you try to sell or otherwise give other people access to your backup, then this might be illegal.
It is the personal code underneath many machines that makes your copy of windows, or rather the installed version, legal.
You are not allowed to use this personal code on more than one machine.
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