Contrary to news reports, Windows XP isn't dead, a US-based systems builder said today.

"Lots of people think that they won't be able to buy XP at all after today," said Jon Bach, the CEO of Puget Custom Computers, a 25-employee system seller. "Some are stockpiling it. 'I better buy it now,' they're saying."

What Bach called misconceptions about Windows XP and the June 30 deadline starts with that, but doesn't end there. "Yes, it's going to be more difficult to get a new PC with XP after today," he said. "But by no means will it be impossible."

Although Microsoft will halt shipments of Windows XP to retailers and stop selling licenses directly to large computer manufacturers after today, the Redmond developer will let companies like Puget continue to acquire XP and install it on PCs through the end of January 2009.

Puget and other system builders will be able to obtain Windows XP Home, XP Professional and XP Media Center from Microsoft's authorized distributors -- one of the largest in the US is Ingram-Micro -- for at least the next seven months.

That seven months, and to a greater degree, the term "OEM," are what have confused potential customers about the availability of Windows XP. "The confusion is over the word 'OEM,' and what that means," said Bach. Microsoft would be able to clear it up, contended Bach, "with one or two words."

OEM, which stands for original equipment manufacturer, has multiple meanings related to Windows XP. Microsoft uses the term to describe the big-name computer makers -- the likes of Hewlett-Packard, Dell, Lenovo and so on -- who have largely shut down sales of PCs equipped with XP.

But OEM is also part of the label used for a special kind of Windows license, one that is sold to system builders and individuals alike. An OEM license for Windows XP Home, for example, costs less than either the regular full version or even the upgrade edition; the lower price reflects the more restrictive licensing terms for an OEM copy, which cannot be transferred from one computer to another, and shifts the burden of support from Microsoft to the system builder or individual.

Trouble is, OEM copies of Windows XP are not only sold direct to system builders by Microsoft's software distributors, but also to the public via regular retail channels, including online.

Bach said that, Windows XP's retirement at retail notwithstanding, his company would continue to sell individual OEM licenses of XP at its walk-in retail store. "We'll be selling OEM copies that end users can buy through January 31. We've talked with our distributors and we expect to have XP available until then."

Previously, Microsoft had said it would stop offering all boxed copies of XP, including OEM licenses, after June 30. Microsoft did not respond to a repeat query today to confirm Puget's claim that system builders and others would be able to obtain new stocks of XP between now and early next year.

Newegg.com, one of the online retailers that Computerworld has been tracking for a series of FAQs on Windows XP, said today that it would only sell what copies of Windows XP OEM it had on hand. "That item will be available until our stock runs out," a Newegg sales representative said in an online chat Monday when asked about future availability of XP OEM.