Full Version/Retail licenses of Windows are the standard “consumer” version of Windows. If you’ve ever walked into an electronics store and saw a boxed copy of Windows on a shelf, you were looking at a retail license of Windows. These are designed for sale to average computer users who may be buying a new Windows license to upgrade their computer to a new version of Windows. It allows them to take their copy of Windows and install it on any PC they like but it can only be installed on one PC at a time.
System Builder/OEM licenses of Windows are used by computer manufacturers — “Original Equipment Manufacturers.” Not only are they used by large computer manufacturers like Lenovo, Asus, Dell, and HP, they’re used by the local computer shop you might buy a custom-built computer from. Microsoft has swung back and forth on whether “enthusiasts” can use System Builder licenses of Windows when building their own PCs. This type of license is designed to stay tied to a single PC forever.
i say three because the copy in retail can be moved from machine to machine, but generally won't transfer after the third install. I have experienced this first hand and read it several places. i could be incorrect though. i suppose i could have been more specific.
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