It's all the scare stories of false positives and M$'s mooted "kill switch" that concern me.
If you have a false positive and it decides that your copy of Windows is not genuine, you can call customer service to get the matter cleared up. I know, for example, that the CD keys which were on stickers attached to laptops are no longer accepted for new registrations (because it was so easy to just walk into a store and write all the numbers down) but you can call and get one that works assuming you can prove your ownership (I'm unsure what's involved with that process).
As for the "kill switch," there's no such thing. Well, in theory, an update could be propagated via automatic updates which could break things (as I think XP SP3 did on media center builds at first) but the updates all go through very extensive testing beforehand and there's no way to give an update to a particular computer. IE, MS cannot decide "oh, we don't like the user with CD key blahblahblah anymore, we'll schedule an update for that machine which will kill it." It doesn't work that way--updates go to all computers that have software which is registered for that update, so it goes to all XP users or none. They can't be targetted specifically.
Although, a remote "kill switch" would be interesting when it comes to the spreading of viruses or spam...if the magic "server" detects a computer is distributing viruses or spam, kill it. That's the sort of thing that you get in sci fi movies, though, not reality.
Hielor: you are probably right though. WGA was already installed and automatic updates were working fine so I probably have nothing to worry about. I just like to feel completely in control of my PC.
Yeah, I know what you mean. That's one of the reasons I didn't like Macs--it felt like the user had no real control over what the computer was doing, like it was assuming that mac users were less tech-savvy and therefore not allowing them to break anything. These were old macs though, I don't know what it's like now.
Having automatic updates turned on is a good idea (look at Conficker--anyone who has automatic updates turned on was immunized six months ago, and it's still a huge problem) and you should only turn them off if you do it manually at least once a month (and even then you wouldn't get critical updates quickly).