XP/harware purchase

I am totally confused....
Ok so XP has to be bought with a peice of hardware... true or not? When I got this disk for XP Pro it came with hardware as "a bonus deal". I thought I was getting a good deal too, because I am cheap.
I am gonna put together another PC and gonna get another Disk of XP for it. I have the choice of doing the upgrade or full Xp, the upgrade will still be 98 IMHO. So full going full is probally the route I will take.
Now if I buy local instead of newegg(which says hardware purchase is mandatory), will I have to purchase a piece of hardware using local source? example... OfficeMax/Walmart sells XP, (even the upgrade), but they don't say you need to buy piece of hardware. I don't want to hose a purchase because a store don't do what it is supposed to.
Also would XP-HE be better than Pro, for second rig, and what are the major diff. in security?
Any input on these questions? Thanks in advance

You only need to buy hardware with XP if it is an OEM edition. In order to use an upgrade edition you need to have another version of Windows already (98, 98SE, ME, 2000 Pro). It is not at all the same as Windwos 98, it is exactly the same as a full edition of XP, except during install it will ask for verification of a previous version of Windows. It asks for a Windows CD to be inserted, checks it, and thats it. Works great and saves money.

The major difference between XP Home and XP Pro is that Pro is more geared toward corporate networks. You are able to use domains, and encrypted files. The base operating systems are the same, Pro just adds more features.

Went to newegg.com and got the HomeEdition<OEM> and stick of RAM sweet!! Thought be best fer second pc. Primary needs Pro.