Does your XP license key get deactivated with windows 7 upgrade?

From my undertanding, when you upgrade from XP you need to clean install on the same partition, meaning W7 deletes the XP instalation.
After all that is the reason you get W7 upgrade cheaper.

That's not correct - You have to do a clean install. It can be to a clean drive/partition - You just have to verify your XP key is genuine.

The question, however, was whether one can install both an upgrade and the OS that was upgraded. Doing so would violate the terms of your license. One can install and use either the original OS or the upgrade OS, but not both.

Ok, but what about this:

XP Professional with a multiple use key (for say, a college computer lab where all the computers have the same XP key on them).

We put Windows 7 upgrade disk on ONE of those systems to test it out and see how it runs. It wipes XP out on that disk and does a clean install, fine.

However, will 7 deactivate that XP license? If we need to install XP on a new computer we build, using our "lab" key, will we run into trouble? I don't want an entire lab's XP key to be "killed" and no longer able to be used because we put Win 7 on one machine.

Sorry I don't have an answer, but after three years, can you please let me know if you ever got an answer to this question?