The reason that I began considering NewSID for retirement is that, although people generally reported success with it on Windows Vista, I hadn’t fully tested it myself and I got occasional reports that some Windows component would fail after NewSID was used. When I set out to look into the reports I took a step back to understand how duplicate SIDs could cause problems, a belief that I had taken on faith like everyone else. The more I thought about it, the more I became convinced that machine SID duplication – having multiple computers with the same machine SID – doesn’t pose any problem, security or otherwise. I took my conclusion to the Windows security and deployment teams and no one could come up with a scenario where two systems with the same machine SID, whether in a Workgroup or a Domain, would cause an issue. At that point the decision to retire NewSID became obvious.
This blog post debunks the myth with facts by first describing the machine SID, explaining how Windows uses SIDs, and then showing that - with one exception - Windows never exposes a machine SID outside its computer, proving that it’s okay to have systems with the same machine SID.
Mark Russinovch - Microsoft Technet