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teceem: I don't remember Windows 9x anymore, but any version since then needed internet activation. Sometimes YOU don't have to activate it*; but that just means that it came pre-installed and the PC manufacturer or store already did that.*
Windows 2000 SP4 was the last version not requiring activation.
And XP (at least the first iteration) could be activated over the phone if you didn't mind carefully typing in the activation code as the support guy/gal recited each individual letter/digit. In my case, I got a Swede on the line. *shudder*

Not that it really invalidates any point you were making. I just felt like nitpicking. :-D