No, it means, as an example.
We have a number of odler copies of Windows XP around here that do not have 48 bit IDE support which retricts the largest useable HD to 127GB, So, we use newer copies and the old locense key when we have to re-install. Perfectly legal as you are paying for the license. The media just happens to come with the license.
Now Microsoft is invalidating those older licenses, requiring you to purchase a new copy of Windows XP. They did this to hedge thier bets that Vista would tank. It has, but sales have not suffered as anyone wanting to use an older license of XP can no longer do so with the latest release of Windows XP Pro.
Most IT departments keep one copy of Windows XP around, and then have all the licenses (activation numbers) filed away. If you want to use the latest copy of Windows XP Pro, you have to purchase another set of licenses.
And lazs, it appears Vista is going the way of Windows ME. In other words, it will be another lost step child from MIcrosoft. Would not surprise me if they drop support for Vista about a year after Windows 7 is released.