The "licensed, not sold" argument has failed in court at least once already.

TapeWorm- Thanks for taking the time to share your experiences and observations on that matter.
We're definitely getting off topic now, and although this question wasn't directed towards me I'd like to put in my two cents on the matter (licenses, contracts, and EULAs are another topic I'm quite fond of). The short answer to this is no. Terms in a license or contract which run contrary to the law are considered unconscionable, and if the matter is brought before a court either the specific term or the entire license or contract will be invalidated. That said, a license or contract can still impose quite a few terms while remaining entirely within the law.
In relation to the Psystar case, a key issue is whether the software is licensed or sold. This isn't the first time this question has come before the courts, and unless the Psystar case makes it to the Supreme Court it certainly won't be the last time. So far the courts have been heavily divided on this issue, with numerous rulings going in both directions. Additionally, in the US there are some individual state laws that seek to clarify this matter. A major law in this area is the Uniform Computer Information Transactions Act (UCITA), which amends the Uniform Commercial Code to specifically treat software as a licensed good. So far only Maryland and Virginia have passed this law. I also recall a couple of states passing laws to the exact opposite effect, although I can't recall which ones off the top of my head.
Ultimately we're a long, long way away from the legal matter of software licenses vs sales being fully resolved, and that's not even addressing the matter of how ordinary people will treat the matter (as the idea of software being licensed and not sold tends to run contrary to the common conceptions of most people).

Well, I'd have PM'd it, but there is no option. :(

The worst DRM story has to be Aliens Vs. Predator 2, which was Starforce protected. Post service pack 2, I could never get it to install again. Monolith basically told me I was out of luck. I ended up pirating a cracked version of a game I paid $40.00 for.

I bought Second Sight used at my local Bookmans, and when I tried to install it, the DRM (I think it's Starforce) kept telling me it would only run on 98/2000/XP. So I eventually downloaded a no cd crack, and what do you know, the game works fine.

Yeah, that's the thing. Do no-CD cracks count as illegal?

Depends where you are. In the US, it would be since you've bypassed/altered the copy protection which contravenes the DMCA.

Depends on laws of the country you're living in (In Finland it's something like bypassing strong/effective copy protection/DRM is illegal. But what's strong/effective?).
On the other hand I've never heard anyone being charged for cracking the games they own nor do I see any way anyone would find out you've done so unless you go give you self in or start shouting about it in public. I'm pretty sure police will only get interested if you start making and distrubuting cracks.

You must have a different DRM or something over there. I have AVP2, and I have no problems installing it on both XP SP2 & 3, and Vista/SP1. And the gold version I have of AVP1 there actually isn't any DRM at all.