Microsoft license question for usage of Windows XP/7 with Parallels for Mac

My mother bought an iMac two weeks ago (OSX/Lion). She plans to install Parallels and wants to use the Windows license of its old Windows XP machine that does more boot. Someone told me that Microsoft license requires that you use Windows 7 Professional or Enterprise - you cannot use Home Edition. Does anyone know what rule of Microsoft, for this for Windows 7 and Windows XP? I ask because it has Windows XP Professional now, I think, but could buy Windows 7 on both. Thanks for the help.

If you have a commercial version of win, which is not currently installed on a PC, you can install it on any hardware/software that takes care of the victory. There is nothing in the MS Win license that specifies what type of device, it can be installed on. Unlike some other software manufacturers

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