Windows XP Home Full Install Version... Install / License questions

[cobrajet431]

Hi Geeks.

I have a Win 2K Pro desktop and I'm considering upgrading it to XP.

I understand that I can't "upgrade" it to XP Home, I would have to choose between upgrading to XP Pro OR do a full install with XP Home. If I do choose to do it, I've already decided to go with the full install of XP Home... that is not the question.

That said, here's the questions:

1) It's a Compaq desktop that I bought used. It did not have a recovery partition or recovery disks when I bought it so I had to order the "Compaq Restore Plus Recovery Solution" restore disks.
I've formatted / restored to factory conditions a few times already with no problems at all.
I need to know if anyone foresees any difficulty in doing this using my new XP SP2 disk as the second restore disk instead of the second Compaq restore disk?

2) What would be the preferred way to do this?

3) Although this rig runs great, I know it won't last forever. When it dies, will I be able to "retire" it and use my XP SP2 Home full install disk to install it on another computer... a future "downgrade" from Vista perhaps?

As always, thanks in advance.