The Collaborative International Dictionary of English v.0.48:

Preoccupy \Pre*oc"cu*py\, v. t. [imp. & p. p. Preoccupied
   (-p[imac]d); p. pr. & vb. n. Preoccupying.] [Cf. F.
   pr['e]occuper. See Preoccupate, Occupy.]
   1. To take possession of before another; as, to preoccupy a
      country not before held.
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   2. To prepossess; to engage, occupy, or engross the attention
      of, beforehand; hence, to prejudice.
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            I Think it more respectful to the reader to leave
            something to reflections than to preoccupy his
            judgment.                             --Arbuthnot.
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