Wow, I agree with MSW! Plus, I didn't steal it. It may be prohibited in the license (never read the details on transferring), but it's closer to owning a CD, having the CD get scratched, and downloading mp3s of the CD so you can continue listening to it. You still have the CD, the case and liner notes, etc. By the law, you still own the license to that "intellectual property". I download mp3s of things I already own all the time if I can't be bothered digging through my cds to burn a single track. This has been considered legal from the early days of online file sharing. MS and/or Dell can put something in the agreement, but that doesn't make it enforceable or even legal.
Besides all of that, this is an operating system that's 3 generations back. I will NOT buy windows 7 for a system that will barely be able to run it if at all, and I don't think the MS lawyers are that interested in hunting down people transferring a single licensed three generation old OS from one computer to another without duplication of functionality.
Operating systems are products, just like anything else you buy. If you decide to sell it or give it away, then that's the way it works. MS may claim some obscure reasoning for trying to prevent it, but it would be like Ford telling you that if you buy a Focus, you and only you can drive it, sit in it, or use it for any purpose. Once you have no use for it anymore, or want to move on to another vehicle, it must be destroyed. Selling or giving it away would be against the license agreement. Bullcrap.