Windows 7 Upgrade Error: “The product key is not valid.”
If you purchased an upgrade of Windows 7, you probably know that you need to have XP or Vista prior to upgrading to Windows 7. However, if you format your hard drive before installing Windows 7 with the upgrade disc, you may receive an error message when you enter your product key saying that it’s not valid. Since you need to have XP or Vista already installed, the product key is invalid if you no longer have the older version of Windows installed.
The obvious solution is to reinstall the older version of Windows first, and then run the Windows 7 upgrade again, but that can be a hassle. To save time, there is a work-around that lets you use the product key after all. Leave the product-key box blank and finish the installation process. Leave the upgrade disc in the drive, and once you are in Windows 7, go to the disc and run the installer again from within Windows. Follow the steps, and once it’s done “upgrading,” or installing for the second time, you can enter your product key with no problems.
This might be a flaw in the installation process, but it seems that “upgrading” an un-activated installation of the same Windows 7 version lets you use the product key from an upgrade license.
Important: Realize that using this solution to be able to use an upgrade disc without owning XP or Vista for the same computer already is a violation of the upgrade license. I am only providing this information for convenience if you are within the license terms and simply didn’t realize that you cannot format your hard drive first. Utilizing this work-around for any other purpose is illegal.
I found this solution at http://www.oit.umn.edu/utools/all-software/windows-7-upgrade/.