Yes, it can be installed on a new computer. You can even use the cd to install it on more than one computer at the same time.

No, if you use it on more than one computer, it won't activate. You need to buy a new license-code. So why not buy more than one cd? Too many posts here of member having lost their only CD and needing it for a repair install. So it's a good idea to have 2 or 3 CD's, if you have 2 or 3 computers with XP installed.