Hi Minnie don't think this is not a hoax, see the article I posted above from Znet magazine ...the popups were from Microsoft.

Q: What will the WGA Notifications experience be for non-genuine Windows users?

A: Customers found to be using non-genuine versions of Windows will receive a message during logon that their copy of Windows appears to be non-genuine and will be directed to the WGA Web site to learn more. Users who choose not to obtain a copy of genuine Windows will receive periodic reminders. Regardless of genuine status, users will not be denied access to critical security updates. Users who have not validated their computers as genuine, however, will not be able to install many updates, including Internet Explorer 7.0 and Windows Defender

So, it appears that Microsoft aren't blocking critical updates.

Wow - Thanks everyone. crazycockers - I can't find anything on the bottom of the computer (so I think I have been duped by this guy....so much for paying my £800 then). royv..wow thanks for all of the info. - I'm frightened of trying to get around it as I'm not sure that I would know how to find everything to follow the instructions that it suggests but, it also looks from what you point out that it will be be essential that I do anything immediately...just annoying. leo - thanks I do have a cd of windows 98 and a full pack of cd's including windows work suite 2000 still from my old computer which I know must have been genuine as I know my brother registered some 'keys' when I got them...will these be okay to get back on if it all goes pear shaped when I eventually try to update to the genuine ones?

Q: How do customers whose counterfeit Windows came pre-installed on their PCs qualify for the complimentary offer?
A: A counterfeit disc is required in order to be eligible for the complimentary offer. This allows customers to show that a counterfeit transaction occurred. Customers who did not receive a counterfeit disk, but are willing to submit a counterfeit report regarding a fraudulent transaction, are able to qualify for the electronic license key offer.

Q: Will people who participate in the genuine Windows offer face repercussions for having illegal software?
A: Microsoft will not bring legal action against the people who participate in the genuine Windows offer.

Q: What can I use for proof of purchase?
A: Because purchase documentation varies widely, we are flexible. Proof of purchase can be a purchase order, the original supplier invoice, or some other store receipt. The proof of purchase must show the supplier’s name and address, the date of purchase, and a reference to Windows.

Q: What must I provide on the counterfeit report?
A: The counterfeit report helps Microsoft identify the reseller and type of counterfeit software transaction that took place. The information that is required on the report is:
Was the copy of Windows preinstalled?
Where was it purchased (Web, street vendor, store, etc)?
What was the reseller’s name?
Did you receive a CD and a Certificate of Authenticity (COA)?
How much did you pay?
What was the date of purchase?
You must also provide your shipping address so Microsoft can send you a Windows Genuine Advantage Kit for Windows XP CD.

Thanks Steve, Mini and everyone I think I'll leave well alone for now and then take it somewhere as you suggest Steve when I've saved up. I am flipping mad though if it is proved to be not genuine.

Thanks again, Kath X

leo - thanks I do have a cd of windows 98 and a full pack of cd's including windows work suite 2000 still from my old computer which I know must have been genuine as I know my brother registered some 'keys' when I got them...will these be okay to get back on if it all goes pear shaped when I eventually try to update to the genuine ones?
Kath XX