How did you get a legal version for free? Which line do I need to get in? If it is a borrowed disc or a copy of someone else's disk, then from the rest of your post, you better stick with what you've got now. IF, IF, IF you borrowed or obtained it from someone who has the code activated already, then you are just the person MS is trying to stop. Again, "I'm not saying. I'm JUST saying". Seinfeld reference
You can call. You don't have to connect to them by the Internet.
It WILL install without a code. You have to activate after Windows XP is installed. The code is created during this time. You have a set number of days in which to activate before it acts up.
It doesn't matter if it is an illegal copy or not. If you use someone else's numbers during the install, then try to activate your installation, THEN the problems start.
MX-727: "I imagine that it uses the serial number(s) of your CPU's and BIOS to come up with that number." When installing, it makes a code based on your hardware setup. If you don't have an Intel CPU WITH processor serial number turned on, it can't have a CPU serial number.
MS says: "In the case where a pirate copies data from one PC hard drive to another to illegally run the software on two PCs, Product Activation stops that by forcing the copied software to be reactivated. It does so by comparing the hardware on which it was activated to the hardware on which it is now being booted. If the hardware is substantially different, then reactivation is required. If it is the same or similar, then the software will continue to work. "
Thus, the reason the cloning works, assuming all hardware is similar.
Check out MX-727's link for all the answers.