As I have a legitimate Windows 7 upgrade lic. and a full XP bleeding-paid-for retail version, I have some troubles trying to grasp the necessity to first install a barebone XP and then do an upgrade. As I’ve paid my fees I want to make a clean install without the time-consuming task to install a version I’m going to get rid of in the first place, let alone to view the remnants of this XP installation scattered around.
In the ol’ days you where asked to enter any of your previous product keys when you entered an upgrade key, but now I’m only getting the 0xC004F061 error from the Microsoft validation server meaning I have to perform the above steps.
My Digital Life has a great solution (workaround #3) which is to alter a setting in the registry (MediaBootInstall from 1 to 0) and rearm the machine using the Windows Server License Manager and reboot. After boot you can now activate W7 using your upgrade key without problems.
Sweet.