I honestly believe this means, and is intented to be so, that if you clone a vm to be used on another rig or OS, the old one is no longer used.
For instance in my opinion and according to Windows 7 EULA every dual boot setup with two instances of Seven both with the same product key is not valid, not allowed. This extract from Seven EULA:
2. INSTALLATION AND USE RIGHTS.
a. One Copy per Computer. You may install one copy of the software on one computer. That computer is the “licensed computer.”
I know a lot of us geeks have a dual boot setup with two instances of Seven. As far as both instances have a separate key it's OK; using the same key is OK only if the second instance is activated using the key only after you have stopped using the first instance, for instance in situations where you are setting Windows in a new HD first making a dual boot setup and installing a new instance, then transferring you files and apps from old instance to new, finally discarding the old one and activating the new one.
In the same spirit, using a clone of an activated Windows instance in a new vm is only OK if the old vm is no longer needed. Defending the use of two instances activated with same key saying that I use only one at the time is for me not a valid excuse, and most certainly not in accordance with EULA. To simplify things a bit, it would be almost the same than buying a legal Windows 7 with mates, then everyone installs it to their own computers activating it with the same key, finally making a schedule to guarantee that only one of the gang is using his / her computer in any given time, only one instance of activated Windows used.
This, of course, is just how I interpret Windows 7 EULA. There are several threads on the Seven Forums where these kind of issues are discussed. Nowadays I try to stay away from those threads because I know my comments and opinions would be taken as provocation. I have to admit, I could be too provocative, too, so better to stay away from those threads
However, my answers to you earlier in this thread are not solely based on my opinion. As my screenshot
showed, I have also tested different scenarios to emphasize my point and be as sure about facts as possible before responding.