Win 7 Activation error: 0x80072EFE

I am an IT professional for a large school district. It is our intention to deploy all new pcs with Windows 7.

We have less than 25 comps ready for win 7 at this time thus we are trying to use our MAK key and not our KMS service.

When trying to use our MAK key we get the following error after 5-15 secs:

0x80072EFE

Connection to the sever was terminated abnormally

I recognize the error code to be somewhat common among other microsoft products, usually windows updates.

Steps we have tried so far:
Using other keys (failed)
Opening all webfilters and firewall to microsoft
turning windows firewall off
uninstalled MSE

This wasn't my project until very recently so don't have much to go on.
Any help would be greatly appreciated.

Also, Until I get my 25 machines, I do not intend to activate 24 computers by phone.


*please excuse my typing, my hand is broken

I did some more experimentation.

I activated by phone to eliminate the possibility of a bad code.
I installed a fresh copy of windows to see if it was caused by my image.
Finally I took a computer home with me to activate off of the network and it work.

I had a hunch that my web filter had been blocking activating.

I will re post when I have successfully bypassed the filter.

Id personally check your schools connection type. Most likely its proxy based. Also check the schools firewall. Try and connect to Windows update if you can connect to it but not update its a local issue. Thats why you can connect at home and not as school. Try your perseonal laptop at the school also. If you also cannot connect there but you can at home. That also confirms a local issue.
GL