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hm. I don't think you would need to do anything to your windows. It's like upgrading your graphics card, ram, sound card, stuff like that that doesn't require a repair.
Its a CPU chip you won't need to re-install or re-activate.
If it was the motherboard then yes you'd need to re-install.
not necessarily.
the first time you boot up after the install you're gonna get a "found new hardware" dialog or 2, but it should be fine if you just keep clicking ok. I've pulled a harddrive out of a Gateway computer and booted it on a built system with no problems.