Microsoft cleared up what was obvious to many already: you can't use the Windows 7 Upgrade version legally if don't qualify for an upgrade. If a user tricks the upgrade installer to setup Windows 7 on a brand new PC, the install is not licensed properly and thus illegal. Even if Windows activates properly after installation the computer is in violation of the license agreement. In the big picture this affects a small number of users since most buy a computer preloaded with some version of Windows which meets the upgrade legal requirements. The upgrade "hacks" for Windows 7 while illegal for users that don't qualify can be very helpful for users that want to start fresh on their computer with a clean install but encounter activation bugs after upgrading.
Read more on the Microsoft SMB blog





