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If I'm understanding you correctly, you attempted to transfer PRODUCT Lifetime Service from your oldest Series 2 TiVo to a new HD XL.
PRODUCT Lifetime Service is for the life of the ORIGINAL TiVo for which you purchased it. It cannot be transferred to another unit, except during an RMA exchange.
TiVo was just following their policy, to which you agreed in the Service Terms and Conditions.
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