Is OEM version re-usable "license-wise"?

I'm about to dispose of an old Micron computer which has Win98se installed by the manufacturer. I'm assuming win98 was installed under an OEM license if such a license existed back then. As far as the Microsoft license is concerned, can I use the install CD and product key of the genuine sticker to setup Win98se on a newer computer, especially a virtual PC? I know how to do it but I want to remain legit as far the OS license is concerned.

It should be as if I bought a new PC to replace the original and I want to transfer the OS for which I've already paid. Am I not allowed to do this? I think if it was a retail CD I could transfer the OS legitimately. However, these CD's were supplied with the old computers so I'm guessing they were covered under an OEM license. If they are, I'm not sure of the user rights.

I found this MS webpage http://support.microsoft.com/gp/LifeLicenseFAQ which has some interesting info. Seems that if I wanted to deploy a new installation legitimately, I would need to have at least a WinXP pro license under a Volume license 6 agreement which would give me the appropriate downgrade rights. So that covers a "1st use". But what about me using a "2nd hand" product key? I will be using the "2nd hand" key on just one computer as I have destroyed the original computer.

Interestingly, the page says MS "will continue to provide media through the Worldwide Fulfillment program". But according to this page http://msdn.microsoft.com/en-us/su [...] 23773.aspx they won't due to "Java-related settlements Microsoft made with Sun".

In simple terms, an OEM licence can only be used on the original hardware and is not transferrable. This is one of the reasons that they are so much cheaper than retail licences.

I really don't think you should loose any sleep over re-using a 98 license hehe.

In fact, I'm sure if you call up MS and say "I'm going to use this 98 license on another PC I have" they will tell you to go ahead. If they don't just giggle and hang up.