Reformat Windows Platform

[msenger69]

I have a question about re-installing Windows. I currently have XP running Pro Tools 7.0 on a Dell without any problems. I recently purchased Kontakt 2 and loaded/registered it. Runs fine as stand alone, but when I open Pro Tools (and sometimes as a RTAS plug-in) I get an error that says system configuration or system ID has changed and that I must re-register Kontakt. I called NI and they said this was probably an error with my software and that I should reformat my platform. They said professional studios do this ~ 2 times a year. Is this true? If so, how do I do it without losing everything? Also, anyone had this problem with Kontakt? Thanks!