Microsoft changed the volume key algorithm with the release of SP1. So every company was issued a new volume key. This could be another reason that the key is not valid anymore. Technically, if your friend is not working for the company any longer, he is not entitled to use that companies volume license. As far as I know, no one is entitled to use their companies volume license software for home use. Of course, this would also depend on the type of license that the company purchased. As it stands, the company went out of business and they are no longer paying for the volume license and the key became invalid. Makes sense to me. Part of the volume license is paying for software assurance. Looks like WGA has done what it was designed for if you ask me. Time for this "friend" to go and buy XP.