If you have purchased an OEM license with a PC or Laptop ( and I point out that this is the only legal way of purchasing OEM licenses)
you are allowed to re-install, re-image from a volume license version such as Select. The End User license Agreement (EULA) is not explicit in explaining this but I have been advised that this is allowed.
Other rules surrounding OEM: and these are explained in the EULA
* Must be purchased pre-installed
* Lives and Dies with the PC
* Limited Downgrade Rights
(Vista and XP only have downgrade rights using a volume license version such as Select)
* No Cross language
(Buy it in English can only use in English, except for the MS free language interface packs that are allowed as it only convert about 80% of product interface with user)
* Backup copy can be created
(used for re-installation, archive only)
Whilst Windows XP is only available to purchase as an upgrade on select, the media kit does provide the full XP version, which can be used for imaging etc and replacing the OEM license etc.
Stating the obvious..
Remember though if you do have windows media kits make sure you have a legal OEM license for the hardware you are re-imaging or re-installing, which must be the same version. Unless you are using the downgrade rights as I have described.