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That's how most "registration key" systems work, but with eLicense, your code is sent to an eLicense server that releases the licenses, so once your code is using the maximum permitted number of licenses (two in OOTP's case), the server won't release any more licenses without you unlicensing a previous copy (or special eLicense intervention, in the case of computer / hard drive meltdown).
However, reinstalling OOTP on top of an already licensed copy should work fine, though you could unlicense first (Control Panel / eLicense Control) if you wanted to be extra sure it would work.
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Jeremy from Tonawanda --- Go Cubbies! --- Unofficial Theta Tester(tm)
"Oh, we got both kinds. We got country and western!"
From OOTP 6: Designated for Assignment FAQ (Includes both problems and solutions! Ooooo!  )
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