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A 9406-720 will run the following versions of IBM i:
http://www-947.ibm.com/systems/support/i/planning/upgrade/osmapping.html
However, any V5 or higher version will require a key. Running without a key only gives you a 70 day grace period before the system is toasted. Something to consider. You will NOT be able to get a key from IBM on any version of IBM i not currently supported by IBM i. I have seen a few systems where the previous owner printed off the keys and stuck them in an envelope under the cover.
Rob Berendt
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