Wait - If he has no real Win CD, how'd he get it installed in the first place? Now, I don't condone piracy, but if I were a pirate, I'd make sure I had this kind of thing on CDs, just in case things like this come up. I'm sorry, but if you're gonna do something, even something illegal, do it with a minimum of sense.
Here's what I don't get, as well: If these people want a free operating system, why not use Linux, which is proven to be more stable than Windows and more secure. Plus, downloading an ISO and putting it on CD is legal.