Generally, it allows installation on one machine only. So, while in principle you can use the same CD, you need a new license.
However, the CD's come in different variations. If it's an OEM CD it might refuse to work with a non-OEM-license you can buy with Microsoft.
Hope this helps.
I have Windows 98 on my desktop computer. If I use my Windows 98 disk to install Windows 98 on my laptop, and then use an upgrade to Windows XP that I have available through LSU, will this cause a problem? The upgrade is only available if you have a previous version of Windows on your computer. I'm just thinking Windows will somehow detect that I used the same disk for both computers, even after I upgrade the version on my laptop. Anyone know how this might work out?