Follow Up:
Yes I skipped the key entry and activation option during install everything went nicely

Then I immediately went to the update section and started an update, during the 1st round
I got 2 critical updates, those were installed flawlessly.
After the reboot I got a second round of updates 21 in all. The drivers for the video card
were downloaded and installed in the first round and other essential updates were installed in
round 2.
The system is being shipped out via UPS tomorrow and my friend already picked up her
copy of Windows 7 so she is ready to plug in her windows key as soon as she gets her new machine