here's the solution;
Digital River responded with instructions on how to correct problem.
Open regedit.exe with Start Menu Search and navigate to:
HKEY_LOCAL_MACHINE/Software/Microsoft/Windows/CurrentVersion/Setup/OOBE/
Change MediaBootInstall from "1" to "0".
Close RegEdit.
Start Menu on the Command Line utility. Right-click this shortcut and choose "Run as administrator."
Click Yes to the UAC prompt.
In the command line window, type: slmgr /rearm press enter
wait for the "Command completed successfully" dialog.
Then, close the command line window and reboot.
After Windows 7 reboots, Right Click Computer select Properties select change product Key.
If the Key does not work now please contact Microsoft technical support at:
Web:
Select your region
Phone: 1-800-MICROSOFT (1-800-642-7676)