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Regardless of what any hack says, a Windows 7 Upgrade is an Upgrade. What you need to know.

image UPDATE: "Hack" identity and more answers from Windows 7 Upgrade Install posted HERE

First, the feedback, excitement, etc. we’ve been seeing since the launch of Windows 7 last week has been phenomenal! Thank you to all of you for providing your feedback to us to let us know how your Windows 7 experience is going.

Unfortunately, it looks like it is time to have this conversation again though. Over the past several days there have been various posts, etc. across a variety of social media engines stating that some “hack” shows that a Windows 7 Upgrade disc can perform a “clean” installation of Windows 7 on a blank drive from a technical perspective. Of course, from the posts I saw, they often forgot to mention a very basic, yet very important piece of information… “Technically possible” does not always mean legal. Let me explain what I mean:

Here are some very basic facts:

  1. When you purchase software, you are purchasing the rights to run the software according to the terms of the End User License Agreement (EULA) that comes with that software.
  2. When you install that software, you are agreeing to the terms included in the EULA you purchased.
    • a. For instance, in the Windows 7 EULA it states, “By using the software, you accept these terms. If you do not accept them, do not use the software. Instead, return it to the retailer for a refund or credit.”
  3. When you purchase an Upgrade license, the included EULA states that you must already own a qualifying full license to upgrade from in order to use the Upgrade license, hence the term “Upgrade.”
    • a. For instance, in the Windows 7 EULA it states, “To use upgrade software, you must first be licensed for the software that is eligible for the upgrade.”

To put it simply, here is a graphical representation of what this means:

General Example   Example with Product Names
image   image

In stark contrast to:

General Example   Example with Product Names
 image    image

So when these posts and write-ups state that you can install clean from an Upgrade piece of software and they fail to mention that you need to own a qualifying software license to be legal to use the Upgrade software for the installation, they give the impression that because it is technically possible, it is legal to do. Unfortunately, by doing this, they irresponsibly put end users at risk of loading unlicensed software. Because of this, I am putting this post up to try and clarify the truth behind what an upgrade license is and provides so that hopefully people will not find themselves misled by some of these other posts and articles that may mislead them to believe something that is very wrong due to their lack of inclusion of this important piece of information. If the posts or write-ups you saw did include this information, then kudos to that writer for providing the accurate information.

Now there are many, many, many, many of you out there that already own Windows licenses that qualify for the Windows 7 Upgrade, so this is a non-issue for you. (I am talking about people who own a FULL license for a previous version of Windows for their computers already, as shown in the first picture example above.) For you, since you have the previous version FULL Windows license and qualify for the Windows 7 Upgrade, you have the rights to do a “clean” install.  

For those of you without an existing FULL Windows license to upgrade from, you should be aware that an Upgrade license by itself is not a license to install and run Windows on your computer. (As an FYI, those who don’t own a full previous version Windows license, as in the second row of picture examples above, and just downloaded the Windows 7 Beta, RC, or RTM code during the trial phases, the Windows 7 Beta, RC, and RTM trials are not qualifying licenses for the upgrade since they are just trial software, not fully licensed software.) In order to be eligible to use the Windows 7 upgrade, you need to have a qualifying license to upgrade from. Again, that’s why it is called an “upgrade.” For you, Windows 7 is available pre-installed on PCs around the world today, or you can purchase a full Windows license from one of the many Microsoft Partners we have, or you can download it today. You might also want to check out some of the great “7 days of Windows 7 deals” going on right now, such as the “PC home makeover” offer that gets you a laptop, a netbook, and a desktop PC (all three with Windows 7 installed), plus a monitor, and wireless router, all for just $1,199!

I hope this helps clear up any confusion over what an “Upgrade” really is and is not and who qualifies to install and use an upgrade license in their move to Windows 7.

And please remember, No, OEM Microsoft Windows licenses cannot be transferred to another PC, in case you were wondering if an old OEM Windows license you have laying around or on another PC could qualify for the Windows 7 upgrade on a different PC.

Thank you and have a wonderful day,

Eric LigmanFollow me on TWITTER clip_image001and RSS clip_image002
Global Partner Experience Lead
Microsoft Worldwide Partner Group
This posting is provided "AS IS" with no warranties, and confers no rights

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Comments

  • Anonymous
    October 27, 2009
    Excellent blog! Very good ilustration about the licenses. Just a question: Windows Vista OEM + Windows 7 Upgrade = ? Windows Vista OEM + Windows 7 OEM = ? Thanks beforehand.

  • Anonymous
    October 27, 2009
    The reason people want to do a clean install of the operating system with an upgrade disk is because the cost of the full product is too expensive, especially in this economy, and this is the way people show it.

  • Anonymous
    October 27, 2009
    @ Anders - An OEM license is a full license.  So an OEM + an upgrade gets you the upgraded version.  Since an OEM is a full license, it is the version that it is, so a Windows 7 OEM is Windows 7.

  • Anonymous
    October 27, 2009
    @ Dean - Thanks for the feedback.  My post is not in regards to how people try to justify it to themselves when they do this.  It is to explain what is legal and what isn't and how people writing articles and posts about how it works and not letting their readers know that if they don't have an existing license already, then the upgrade license alone does not give them a license to install Windows 7.  This is misleading and potentially puts the readers in a position of not having a full Windows 7 license. Thanks - Eric

  • Anonymous
    October 27, 2009
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  • Anonymous
    October 28, 2009
    This subject seems to get repeated so often that it is annoying to I.T. professionals, and continues to be ignored by those who feel justified in stealing whatever software they can.  There is one variation that I have never seen adequately addressed.  When taking over new customers, I frequently find that they are using various “home” versions of XP or Vista.  Since Microsoft has discontinued the Home version as a valid license for the volume license upgrade, there is no clean path to cleanup these customers licenses.   Retail licenses are too cumbersome and customers will lose their documentation of ownership.  The software desk of one or my distributors recently recommended purchasing OEM licenses and “Re-purposing” the computers. While this is technically feasible, I have never seen this mentioned in any Microsoft communication, maybe it is buried somewhere in the license agreement, but I haven’t seen it.

  • Anonymous
    October 28, 2009
    @ PRPetitt - You actually answered your own question.  In the first example you gave, you stated, "I have an XP full license."  From there, you explained the various upgrade licenses you added.  If you look at the graphics I provided above, you have a full license and an upgrade, so you have a legal license for the upgraded version.  This is what the ability to clean install is designed for, for those who actually do qualify and have a legal license through the upgrade and want to do a clean install.  As long as you have a full qualifying license and the upgrade license, you can install the new version (and don't need to do an re-install of the old version to do so).  If they did not have the full Windows license to qualify for the upgrade license, then you would not be legal to install the upgrade version as a full version. In the second scenario again, the client has an HP or Gateway that came with a full Windows license and now you are applying an upgrade license to the full license.  Since you have the full license and the upgrade license, you can install the upgraded version clean if you choose.  If they did not have the full Windows license to qualify for the upgrade license, then you would not be legal to install the upgrade version as a full version. Make sense?

  • Anonymous
    October 28, 2009
    Eric, I had no question, just a complaint about no way to avoid doing multiple installs, fyi as far as "clean installs" go during the anytime upgrade to ultimate, it offers the option to format the disk which results in a "clean install" (Clean refering to non in-place upgrade).  Prior to Vista one could satisfy the install program by supplying the older product media - it did not need an installed operating system, hence one did not need to do multiple installs.

  • Anonymous
    October 28, 2009
    I am still confused about the Windows 7 licenses (10 Pro and 1 Ultimate) included in the Microsoft Action Pack.  As I understand it, these are Volume Licenses, and as such they can only be used like an upgrade, meaning they still require a qualifying OEM license.  Is this true?  Also, and most importantly, if my previous statement is correct, I realize that home OEM versions are not eligible, such as XP Home or Vista Home Premium.  I have found nothing on whether or not XP Media Center Edition is a "qualifying" OEM license that can be upgraded to Windows 7 Pro.  Can you please answer these questions?  I can't find the answers ANYWHERE.  A blog post specifically about the Windows 7 action pack licenses and possible upgrade paths would be ever so helpful.

  • Anonymous
    October 28, 2009
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  • Anonymous
    October 28, 2009
    I used the hacky registry, rearm trick for my upgrade install since I replaced the hard drive in my laptop before doing the install. So yes I have a license but nothing installed on the drive. So hacking the install is the only way to use my legal upgrade media and license key. The fact that we have to go through the workaround process just points out how broken the upgrade install process is. What happens when a hard drive, that previously had XP or Vista installed, dies and someone needs to do a fresh install and they put the dvd in and expect it to work?

  • Anonymous
    October 28, 2009
    Microsoft will not answer this question even after many attempts.  The first sales doctrine states that I have the right to sell my OEM version of software.  The person that repurchases the OEM software is entitled to full use as the original purchaser.  However, Microsoft denies that persons use of the software by forbidding updates and reducing functionality.  Example; I sell an OEM version of XP pro to Jack and then he purchases a Windows 7 pro upgrade.  Jack installs Windows 7, is this legal or illegal?  I wager you will ignore this post just as Microsoft has in my many attempts.

  • Anonymous
    October 28, 2009
    @ Fishbert - Thanks for the feedback.  You might want to take a look again at what I wrote in the Blog post.  In your scenario you are saying that you own a full Windows license and then bought the upgrade for it.  That means you have a licnese to run Windows 7, so if you want to do a "clean" install, go ahead.  There is no reason for you to keep draggin out the original media for the full Windows license that came on that machine. The ability to do a clean install was included back in the Vista days to allow consultants and IT pros to do clean installs from that media, for people who were licensed to do so.  In your case, you have the full qualifying license for that PC already, which qualifies you for the Windows 7 upgrade.  So feel free to install using the "clean" method. What I was calling out in my post is that people who do NOT already have a FULL Windows license for their PC to qualify them for the Windows 7 Upgrade, then just because the DVD can physically do a clean install, they are not licensed to do that because they don't own a FULL Windows license to even qualify them to purchase or install the Windows 7 Upgrade. Does that help clarify? Thanks again - Eric

  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
    Actually, in Germany I wonder whether anyone will buy an upgrade. OEM licenses can be bought at a fraction of the cost at Amazon (like 75 Euro compared to 120 Euro for an upgrade). PS: I also commented about OEM licenses you can buy in Germany at Amazon yesterday on the post about transfer rights of OEM. Could you please aprove of that comment and also answer the question I posed there? Or are you trying to keep discussion of OEM licenses that are sold to end consumers of the blog?!? Let me tell ya, that would be silly and these kinds of things normally backfire :)

  • Anonymous
    October 29, 2009
    Solution would be to be asked for two productkeys. The Windows 7 upgrade key AND the key of the original qualifying Version ! I recently bought vista with free upgrade to win7 and now I want to change harddisk. So I want a clean install WITHOUT preinstalling vista.

  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
    I have to say, requiring the previous version of Windows to be installed on the hard drive before being allowed to install Windows 7 Upgrade was a horrible idea. If I have a need to reinstall Windows 7, perhaps because of a new hard drive or hard drive problem, I don't want to sit through an install of Vista first. I pretty much agree with Licantrop0's recommendation.

  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
    Get over it, there are only 3 people on the whole planet who will want to install 7 on a machine without previously owning a prior version of windows for that machine. And, even if someone were building a new machine, the OEM version is the same price so what's the problem? You should have found something more productive to do with your time because anyone smart enough to install windows would know all of the legalities involved.

  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
    Give me a break, how many people really don't have any qualifying verion of windows to upgrade? Really? Wouldn't you want to give those people a deal anyway since they are the tiny minority moving from Mac or Linux? The stupid part is that they have different prices. Just make it the same price - upgrade or not - and avoid the hassle. This kind of bad PR will cost MS far more money than will ever be recovered trying to charge people more $ with some silly scheme.

  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
    I recently brought an HP computer that has Vista Home Premium pre-installed, I want to replace the current hard drive with a large drive I purchased and do a clean install of Windows 7 with the windows 7 upgrade CD I recieved from Microsoft. Would this be ok to do? or Do I need to first reinstall Vista on the new drive then upgrade to Windows 7 using the upgrade cd?

  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
    Hello, I ordered my Upgrade-Kit already in August. I had problems with my pre-installed Vista OS and formated my computer.Am I allowed to do a clean install of Windows 7? I don't have a recovery-disk (it was empty...) but I have a Vista license. Thanks, Timmy

  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
    I have a qualifying full license and purchase an upgrade.  I wipe the disk, and install.  The install fails because it never asks for proof of a full license. I am not doing anything outside the scope of the license agreement, yet I am locked out. This is what people are having trouble with. You do not address this scenario.

  • Anonymous
    October 29, 2009
    @ Robert Teague - Absolutely agree that doing a clean install vs an in-place upgrade is often preferred. Again, in my Blog post above, I am not saying you can't do a clean install if you purchased the upgrade and have a full version license for your computer for a qualifying previous version of Windows.  What I am saying is that if you DON'T own a full license for a qualifying version of Windows for your computer, then buying the upgrade alone does not give you a license for a full Windows install, regardless if it is physically possible or not. Thanks for the feedback - Eric

  • Anonymous
    October 29, 2009
    @ Timmy - Your computer came with an OEM license of Windows Vista when you ordered it.  That is a full license for version of Windows that qualifies for the Windows 7 upgrade.  You then added the Windows 7 upgrade license to it.  This is the scenario represented in the first row of graphics I provided above.  Because you have a license for Windows 7 (had a full license for a qualifying version of Windows and then added the Windows 7 upgrade), you can do a clean install on your machine. Thanks for the inquiry and I hope this helps clear up any confusion. Eric

  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
    Right after I did the clean install over my vista using Windows 7 Premium upgrade, I did full image backup of my harddisk using the backup feature included in Windows 7 and burned it to a single double-layer DVD. So, there is my clean install for future. I can just restore my harddisk to initial state anytime I want with the backup disk now. Well, it won't do any good if you buy a new computer and you want to install your copy of Windows 7 on that but how many computer would you change in that period anyway?

  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
    If theres a problem with upgrade licenses, you shouldn't sell upgrades. Once someone pays thier hard earn cash for a product, they own it and can do whatever they want. I know you're gonna disagree, but thats my opinion.  Windows 7 full version is too dam expensive. And since you're so smart and telling us what the EULA says,  what does the EULA say about MS selling us that POS Vista? Don't you owe us a refund?  Anywho, thank you're lucky stars people are buying the upgrade version at all, after that mess Vista.  I mean come on, it could be worst, people could get the cracked version from one of the file sharing sites for free. (name of site ommitted)

  • Anonymous
    October 29, 2009
    It's technically possible to clean install Windows 7 using the upgrade media. It's illegal to install Windows 7 by using Windows 7 upgrade media if you have the license of previous version of Windows such as Windows XP. I got it. What if I do have the license of the previous version of Windows? If my desktop PC was shipped with the preinstalled (OEM) Windows Vista, yet I choose to do the custom (clean) install? Is my action considered illegal? Am I still licensed to nothing? I wonder if the EULA really forbids me to do the custom install even if I do own the license of previous version of Windows?

  • Anonymous
    October 29, 2009
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  • Anonymous
    October 29, 2009
    Let me get this straight: you condemn the people who post these "fixes", yet you create a TOTALLY unrealistic means of doing an "upgrade".  While I've gotten by with Vista, I wanted to be able to go to a 64bit OS, and decided to do so with Windows 7.  Since my Dell came with only a 500GB hard drive, I thought it would also be a good time to upgrade to a 1TB drive.   So... how exactly am I to do this... care to offer a reasonable procedure?????

  • Anonymous
    October 29, 2009
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    October 29, 2009
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    October 29, 2009
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    October 29, 2009
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  • Anonymous
    October 30, 2009
    Then WHY make it so difficult? I mean, there could be a technical very very easy way to avoid the hassle, that current customers have to go through: Instead of having a fully activated copy of XP or Vista installed, why not have users enter their old XP or Vista Serial during the activation process of Windows 7? Instead you require users to first install XP which is a hassle. I mean I am typing this from a fresh Win7 upgrade install. Fortunately I had XP installed and activated before. But there is no rescue partition anymore and I also don't have backup disks. If I ever want to reinstall Win7, I'll run into trouble. A valid XP-key however is still printed on the bottom of the case. Why let users run through this stupid process of installing an old version first????

  • Anonymous
    October 30, 2009
    Vista-OEM + Win7 Retail Upgrade Disk = what? Win7 Retail, OR Win7 OEM? BruceG

  • Anonymous
    October 30, 2009
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  • Anonymous
    October 30, 2009
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    October 30, 2009
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    October 30, 2009
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  • Anonymous
    October 30, 2009
    Hi Eric, you have the patience of a Saint! I bought my Laptop and Desktop new with XP Professional so I can purchase the Upgrade and be fully licensed, correct? Thanks….John

  • Anonymous
    October 30, 2009
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    October 30, 2009
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    October 30, 2009
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    October 30, 2009
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  • Anonymous
    October 30, 2009
    Hi Eric I 'think' I am understanding you correctly. What you are saying is that as long as you 'own' a license for a qualifying, previous version of Windows, that you can install an upgrade version of Windows 7, doing 'whatever' it takes to get it installed. Is this correct? Regards, Ron

  • Anonymous
    October 30, 2009
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  • Anonymous
    October 30, 2009
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  • Anonymous
    October 30, 2009
    I give you an example, My wifes Acer Aspier 1410 came with Vista 32bit , we upgraded to Win7 from the Acer free upgrade. We found the upgrade did not seem to have worked properly. We reinstalled Win 7 by formating the drive. but now the windows key does not work. How do we get this fix. Why is it that the consumer who is a MS Customer suffers.

  • Anonymous
    October 30, 2009
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    October 30, 2009
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  • Anonymous
    October 31, 2009
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    October 31, 2009
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  • Anonymous
    October 31, 2009
    Haha, how funy :D Quote: "And please remember, No, OEM Microsoft Windows licenses cannot be transferred to another PC, in case you were wondering if an old OEM Windows license you have laying around or on another PC could qualify for the Windows 7 upgrade on a different PC." That is quite wrong - in Germany you are LEGALLY (Decision of the German Bundesgerichtshof in 2000) allowed to transfer OEM licences to new PCs (http://de.wikipedia.org/wiki/Gebraucht-Software) :P

  • Anonymous
    October 31, 2009
    Nice job Microsoft. Take one of your biggest cheerleaders (Paul T.) and throw him under the bus for publishing technical information that we are all desperate for (how to perform a clean install from upgrade media) that Microsoft itself WILL NOT PROVIDE. What's next?  Going to hunt down the 1 or 2 Windows Mobile fans out there and send a cease-and-desist letter to them?  

  • Anonymous
    October 31, 2009
    so, does a vista business licence qualify for an upgrade to windows 7 professional?

  • Anonymous
    October 31, 2009
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  • Anonymous
    November 01, 2009
    I had no problem doing a clean install with the HP upgrade, I dual boot with XP Pro and installed 'clean' to the partition where the W7 RC was. My question is: do I now have to delete my copy of XP?

  • Anonymous
    November 01, 2009
    Please indulge me with a specific question. I have a Dell PC with an OEM version of Windows XP Professional. Can I legally upgrade this PC with the Windows 7 Professional Upgrade SKU? Thanks.

  • Anonymous
    November 01, 2009
    Just about every PC ever made came with an OEM Windows install.  Therefore we all qualify for upgrade media.

  • Anonymous
    November 01, 2009
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  • Anonymous
    November 02, 2009
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  • Anonymous
    November 02, 2009
    Eric the trouble is MS have deliberately made licensing confusing, and they won't be sorting it anytime soon.

  • Anonymous
    November 02, 2009
    @Ivan and others - I can promise you that I am not "ignoring" your request for this information.  I have submitted these inquiries to the appropriate people and I will be more than happy (BELIEVE ME) to post a link to the correct information for you as soon as I hear back.  Please stay tuned.

  • Anonymous
    November 02, 2009
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  • Anonymous
    November 02, 2009
    @Eric Thank you Eric now we may be getting somewhere. I understand that it is not your decision and you are probably sick of getting the flak as well. Hopefully the Microsoft machine has planned for this, then again given its track record maybe not.......

  • Anonymous
    November 02, 2009
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  • Anonymous
    November 03, 2009
    @ Will - Thank you for the feedback.  Since Neither Ed nor Paul were the targets of my post, regardless of what the reporters (none of whom confirmed any of their facts with me) stated, I did reach out to both Ed and Paul offline to let them know this.

  • Contrary to Paul's follow-up blog statement, "It's too bad I never heard from him directly," I actually did DM him on Sunday with an apology.  It was the same DM content that I sent to Ed Bott as well.  Ed responded and we have had numerous conversations since.  Paul never responded.
  • Contrary to Paul's follow-up blog statement of, "I'd never have known about if a friend hadn't forwarded the link," just after my post went live on Monday, I sent a DM to Paul with the link to the post, telling him I was posting a public apology so that he was aware of it and knew it was sincere.  It was the same DM message I also sent to Ed Bott just afterwards.  Ed responsed with a, "Thank you," and posted a follow-up to Twitter about it.  Paul never responded.
  • I sent a follow-up email to Paul yesterday asking about both of the items above.  Paul never responded.
  • Now before you ask if I sent the DMs to the right place, the answer is yes, and I know this because Paul did respond to a separate DM about his schedule (with no response to any of the above). So I have reached out to Paul and Ed several times starting over the weekend about this (contrary to the statements in Paul's follow-up blog post).  Ed has responded and we have had several communications.  Paul has not responded. Thank you for the feedback.
  • Anonymous
    November 03, 2009
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    November 04, 2009
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  • Anonymous
    November 04, 2009
    @ nothappybill - I am sorry to hear about your experience.  I have a follow-up question for you; however, you did not provide any way to contact you directly about this in your comment.  If you're on Twitter, you can ping me @EricLigman.  Or, please post in your comment. Thanks for the feedback

  • Anonymous
    November 04, 2009
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  • Anonymous
    November 06, 2009
    If you purchased an 'upgrade' license from Windows NT on up, you can legally upgrade. ie: WinNT4 > Win2k Pro > WinXP Pro > Win7 Pro Also, I would recommend a clean install in each phase of this process, instead of an 'on-disk' upgrade (where applicable). I must say this: Microsoft and it's employees are made aware of the licensing confusion with nearly every product release, yet they continue down the same path.   At a recent developers conference, it took literally hours to review the licensing.  For more read here: http://mcpmag.com/articles/2009/09/09/microsoft-licensing-is-too-hard-for-customers.aspx http://www.directionsonmicrosoft.com/samples/49-samples/788-5-reasons-why-microsoft-licensing-is-hard-and-is-likely-to-remain-that-way.html And here is a boot camp you can attend to understand the incomprehensible! http://www.directionsonmicrosoft.com/licensing/30-licensing/312-bootcamp.html Really, it's just ridiculous.

  • Anonymous
    November 06, 2009
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  • Anonymous
    November 06, 2009
    You can use a windows 7 upgrade disk to install windows 7 RTM over an windows 7 Beta/RC install. However you must use the "custom install option" and you must own a valid windows license for that computer to comply with MS EULA.

  • Anonymous
    November 07, 2009
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    November 07, 2009
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    November 07, 2009
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  • Anonymous
    November 07, 2009
    @rob - As I have noted in my post above, my post on the 2nd, and in numerous comments here, if you are licensed properly, you can do a clean install (read the text highlighted in red in the post above).

  • Anonymous
    December 20, 2009
    I bought my HP desktop computer a couple of years ago.  It came with Windows XP installed, with an offer for free upgrade to Vista Home Premimum.  I did the upgrade.  Now, I want to upgrade to Windows 7 Professional.  HOWEVER, I read somewhere that I cannot go from Vista Home Premimum to 7 Professional.  I'm not a computer geek.  Nor am I a hacker.  Just need a simple answer.  Yes or no.  Thanks.

  • Anonymous
    December 25, 2009
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