Hello Michael,
Right now, your computer has a Volume Licensing (VL) edition of XP Pro installed (Line 10), and that installation was done with an invalid Volume Licensing Key (VLK) (Line 2). A status of Invalid Product Key means that the installed Product Key (PK) was generated by a non-MS Key Generator pirating program, which seems to be your situation.
As a rule, VL editions of XP should not be sold to individual consumers. Businesses, schools and gov'ts normally use VL editions for flexibility in installing many computers. Also, Volume Licenses for XP are upgrade licenses only and can never be used as the orginal or base license for a computer.
This is why you were seeing the "software counterfeiting" messages on the computer, because the current installation of XP is an unauthorized installation.
You wrote that you received a genuine hologrammed Microsoft CD with your purchase. Please closely examine the CD that came with your purchase:
1. Does the CD read "For distribution with a new PC only" in the upper left? Is the hologram of the CD embedded within the plastic of the CD, or is it a very thin label affixed to the top surface of the CD?
2. Pop the CD into a computer and navigate to the setupp.ini file within the \i386 folder. This is a small file with several lines of text and numbers. Please post the text on the last line of the file.
For great advice on all topics XP, visit http://www.annoyances.org/exec/forum/winxp