My licenses are hardware locked, and I use the SDK rather than the built in stuff. When a user buys the software, Plimus notifies me about the sale details and I create a serial (GUID) and email to the customer. The customer enters the GUID into the app, which then generates a HID and calls a web service on my server which returns the license. Hey presto.
I don't like exposing my customers to the HID, as far as they're concerned it's just an activation process.
Tim