"All IP protection technologies will be cracked at some point; it's just a matter of time," Allen Nieman, Product Manager of Activation at Microsoft, told BetaNews in an interview last May. But this week Nieman's concession became a reality as a key generator capable of creating unique, valid installation and activation codes for Windows XP came to light. While patches and cracks for Windows Product Activation have existed since the release of Windows XP, would-be pirates were forced to physically modify system files and risk invalidating their operating system with updates. If it desired, Microsoft has the ability to instantly void such cracks or leaked keys with service packs or security patches. The key maker, apparantly released by a group calling themselves "The Blue List," poses a more significant problem to Redmond - discerning legit keys from those generated by ill-intentioned users.

Microsoft has always been quick to point out that pirated copies of Windows are ineligible for technical support and warranty protections. Although if the created keys are indeed genuine, a user running a shared or downloaded copy of Windows will appear no different to Microsoft support personnel than one who purchased a copy in the store. "The only way Microsoft would know it's a generated serial in this case is if customer service asks for the x0- number on the CD and that is highly unlikely," an informed source told BetaNews. Most surprising is the relatively little work it takes to compute a valid key. Tests by BetaNews resulted in two keys and twenty-nine failures in just under seven minutes of heavy CPU usage. As the included information states, "not every random cd-key [can] be made valid, so it usually needs more than one try to compute a valid cd-key." Both keys were each able to correctly activate a retail copy of Windows XP in the test lab.