Microsoft

When I wrote on Monday about the ins and outs of what counts as proper licensing of Windows 7, I was worried that it might turn into a flame war. But, instead, readers sent in a whole bunch of really good questions on the intricacies of licensing Windows 7 that went beyond the basics I had covered.

Things like dual-boot machines and systems with beta versions of the operating system raise all sorts of interesting licensing challenges.

Before we dive into the edge cases, though, here's a recap of the basics on Windows 7.

For those upgrading their PC, they can choose from Home Premium, Professional or Ultimate editions. There is also a family pack that includes three upgrade licenses for Windows 7 Home Premium.

Many people will have to do what is known as a custom or "clean" installation, which involves backing up one's data, installing Windows 7, then restoring the data and re-installing all applications.

All users of XP will have to go this route, as will those moving from a 32-bit version of Vista to a 64-bit version of Windows 7 (or vice versa), as well as those who are moving from a higher-end version of Windows Vista to a lower-end version of Windows 7.

Those moving from Windows Vista to the same version of Windows 7 (or to Ultimate) can do what is known as an "in-place" upgrade, which preserves files and applications.

Anyway, on to the tough cases. Here are some of the questions that readers sent me, as well as the answers I heard back from Microsoft.

Q: I installed the release candidate version of Windows 7 on a reformatted hard drive that previously had Windows Vista installed. Can I use the Windows 7 Home Premium Upgrade version to install a licensed copy?
A: Yes. You can do a custom installation ("clean install") to Windows 7 using the upgrade. The Windows 7 installer will detect you have the RC installed, enabling you to do this.

Q: Try as I might, I haven't been able to find any reliable information on whether I can upgrade from Vista Home Premium Edition (that came with my HP Laptop) straight to Windows 7 Professional/Ultimate, or whether it is only possible to upgrade from "Vista Home Premium" to "Windows 7 Home Premium."
A: You can do an in-place upgrade from Home Premium to Ultimate, provided you aren't switching from 32-bit to 64-bit or vice versa. Going from Home Premium to professional, however, requires a custom installation. (For a chart of which versions can be done via in-place upgrades, check out this Microsoft Web page.)

Q: I have Vista Basic on two computers and XP on the other one. So all I would have to do is use a Windows 7 upgrade disc on all three computers? Does one disc do one computer or will it do all three? I live in Canada, not the U.S.
A: In both the U.S. and Canada, your best bet is probably the Windows 7 family pack, which offers a license to upgrade up to three PCs.

Q: Can you use an upgrade disk to run XP (or Vista) in dual-boot (meaning that one partition or hard drive has the older operating system and the other partition or drive has Windows 7?
A: Microsoft treats a dual-boot machine as if it were two PCs, so you can only use the upgrade if you are installing over an existing Windows partition. So, unless you have two licenses already on that system, you will need a full copy of Windows 7.

Q: What about upgrading a Mac?
A: In order to qualify to use the upgrade version, Mac owners need to be running a previously licensed full copy of Windows (not just a beta version). That applies whether one they are using Windows in Boot Camp or using a virtualization product like Parallels or VMWare's Fusion.

(Credit: Gizmodo)

We've seen slides and videos of Microsoft's Courier dual-screen booklet in action, but nothing has quite explained how all of these things actually work. This document explains Courier's interface, gestures, and features more in-depth than ever before.

Courier user interface in-depth -- photos

This story originally appeared on Gizmodo.

There's a bit of a tempest in a teapot brewing over what one can and can't do with a Windows 7 upgrade disk.

My hope with this post is to help things simmer down as opposed to boiling over, but we'll see. So here goes.

The upgrade version of Windows 7 (as opposed to the higher-price full version) lets one move from any properly licensed version of Windows XP or Windows Vista to Windows 7 on that same computer. Only certain of these upgrades, however, can be done as a simple update--what Microsoft calls an "in-place upgrade." Users moving from Windows XP, switching from 32-bit to 64-bit versions, or moving from a higher-end version of Vista to a lower-end version of Windows 7 can use an upgrade disc but will have to do a more cumbersome upgrade, known as a custom, or "clean," installation.

The difference between an in-place upgrade and a "clean" installation, in this instance, means backing up one's data, installing Windows 7, restoring the data, and reinstalling all Windows programs. Windows 7 upgrade disks can be used to do this clean installation and will recognize the previously installed version of Windows. So if you don't have any previously installed Windows on the machine, you will want to get yourself a full copy of Windows 7.

While it might be technically possible to use the upgrade disks to do an installation of Windows 7 without a previous version, doing so, as Microsoft points out, is not properly licensed.

Some of the confusion has come after enthusiasts noted a way to get an upgrade disc to install on a fully erased hard drive.

Again, the main issue here is whether one is properly licensed to do so. If you have a licensed copy of Windows XP or Vista for that computer, you are good to go, and Microsoft technical support should be able to help you activate that machine. If not, you may be able to get it to install, but you could well run into technical or legal hurdles.

I think that ZDNet blogger Ed Bott put it well in his post on this topic:

The answer is really simple. If you qualify for an upgrade license, then yes, you can use any number of work-arounds to install the operating system legally. If you don't qualify for an upgrade license, then those same workarounds might technically succeed, but your license is not valid.

Will you get away with it? Probably. But if you're running a business, you run the risk that an employee will turn you in to the Business Software Alliance, which could lead to an audit, civil charges, and eventually some stiff penalties.

It should also be pointed out that beta test and pre-release versions of Windows don't count as a previously licensed version of Windows, but if you have the RC installed over a previous version, for example, you can do a custom upgrade rather than having to reinstall XP or Vista before installing 7. (The upgrade version can detect the previous versions used before Windows 7.)

Nor is it allowed to count the version of Windows that came installed on a previously bought PC, if that's not the machine you're upgrading. (Retail boxed copies can be transferred from one machine to another; ones that came pre-installed on the PC are licensed only for that machine.)

This is also relevant to Mac users who want to run Windows 7 on their machines. Such users also need to have a previously licensed full copy of Windows to properly qualify for upgrade pricing, whether they are using Windows in Boot Camp or using a virtualization product like Parallels or VMWare's Fusion.

I hope that this overview helps more than it adds to the confusion. Either way, please let me know.

Microsoft appears to be getting relatively strong early adoption of Windows 7 in the 10 days since its official launch.

According to Net Applications, more than 3 percent of PCs accessing the Web in the past two days have been doing so using the new operating system. Usage of the operating system has been growing strong in recent days, though Windows 7 already accounted for 2 percent of global Web traffic in the days ahead of its formal launch.

"The early adoption of Windows 7 looks very strong, and I don't believe Vista enjoyed the same early success," said Vince Vizzaccaro, an executive vice president at Net Applications. "Plus, we've seen surges the past two weekend days, and Windows has historically seen much higher usage market share on weekdays than on weekends."

However, weekends tend to see stronger usage by consumers. And consumers are more likely to move quickly to a new version of Windows than businesses, which tend to do extensive testing before adopting a new operating system.

The news is not all positive for Microsoft, though. As a whole, the Mac OS continues to gain on Windows. As of October, Windows had 92.5 percent of the worldwide operating system market, but Mac OS reached 5.27 percent, up from 5.12 percent in September. (Past numbers from Net Applications showed the Mac OS with significantly higher market share, though the market research firm says it has changed its methodology to better reflect the relative traffic of the countries from which it is getting data.)

Apple's recent anti-Windows 7 advertising has touted that if users are going to upgrade their Windows XP machines and have to transfer their data anyway, they might as well move to a Mac. Vizzaccaro said the early numbers suggest that the Mac might indeed be benefiting from such a trend but said it is too early to know for sure.

"We'll know much more in the months ahead," he said.

The "Microsoft Signature" PCs that are being sold at Microsoft's retail and online stores contain a bunch of extra Windows Live software, but also feature something rarely found on a PC--a clean desktop.

(Credit: Microsoft)

Although Microsoft isn't making its own PCs, the software maker is taking an active role in customizing just what goes on the computers it sells through its online and retail stores.

In its new role as PC retailer, Microsoft is loading computers with what it's calling its Microsoft Signature experience--a collection of Microsoft products, including the complete Windows Live suite, Security Essentials antivirus product, Zune jukebox, and Bing 3D Maps software, as well as Adobe's Flash and Acrobat Reader products. Internet Explorer 8 is the browser, with Bing as its default search provider.

(Credit: Graphic by Ina Fried/CNET News)

The computers are being sold at Microsoft's two retail stores--the Scottsdale, Ariz., store that opened last week and the Mission Viejo, Calif., outlet that is opening later on Thursday. The software giant is also selling PCs throughout the U.S. via its online Microsoft Store.

The goal of the Signature effort is to give customers what Microsoft feels is the best software experience they can have on a PC.

"Signature gives them a PC that is ready to run," Microsoft retail unit chief technology strategist Kevin Eagan said in an interview. "We think we're really unlocking the potential of Windows 7."

Microsoft isn't completely deciding what goes on the system. Computer makers can also add software that takes advantage of particular hardware features, but it's not allowing any trialware or "crapware."

"Much like other retailers would define (what goes on their PCs), we do the same working closely with our (computer maker) partners," Eagan said.

As part of the in-store experience, Microsoft staffers will also help customers install other software they might want--even competitor's products, such as Apple's iTunes. They can also change their browser or default search provider before they leave the store, Eagan said.

"We want to give customers what they are asking for, so they leave store 100 percent satisfied," Eagan said.

Eagan said Microsoft is just taking advantage of the customization options that other retailers also have available to them and said the company doesn't anticipate any regulatory concerns.

"We're absolutely confident that what we've done is added another choice for customers," he said. "We think expanded choice is good for customers."

Those who already have a PC, but live near one of Microsoft's stores, can bring in their PC and have the Microsoft Security Essentials software added at no charge.

Although some scoffed at the notion of Windows 7 house parties, Elliott Minor of Albany, Ga., said his event was a hit.

Roughly two dozen people showed up to the event, which was held at his church. Although not a huge gathering, the event seemed to be one of many that served Microsoft's purpose--helping spread the word about its just-launched Windows 7 operating system.

Two techies from the area teamed up to highlight Windows 7's key features and answer questions.

"Judging from the oohs and aahs of guests, I'd say they were favorably impressed," Minor said in an e-mail interview.

Photos: A Windows 7 launch party, Georgia-style

Minor said he and the organizers tried to get in the Windows 7 spirit. "We served Windows 7 cake and cupcakes--all with green icing topped by a red 7--pimento cheese sandwiches on 7-grain bread, and we gave 'em 7-Up to help wash it down," Minor said. (Pimento-cheese? Well, at least it's healthier than Burger King Japan's seven-patty Windows 7 Whoppers.)

Anyway, rather than keep the party pack given to party hosts, Minor raffled them off, generating $77 for a local soup kitchen. (That's in contrast to the many folks that tried to put their swag up for sale on eBay.)

In all, Microsoft expects the house parties and meet-ups to reach some 800,000 people. Events are taking place in the United States, United Kingdom, Germany, France, Canada, Australia, Mexico, Hong Kong, Japan, Spain, Italy, India, and China. Microsoft employees have been having events for a little while now (such as this one), while the customer-hosted parties kicked off last Thursday on launch day.

For a look at other Windows 7 launch parties, check out this feature from Gizmodo. Meanwhile, I doubt this is what Redmond had in mind, but some folks in the UK did a funny video suggesting people have a Windows 7 torrenting party (Warning: some f-bombs and references to drug use).

I feel fairly confident that Windows 7 will turn out to better than its predecessor.

I feel fairly confident that it will not turn hairy users bald, nor cause sane users to enter institutions of mental restructuring.

However, I have been watching these two pieces of film from Japan with some small prick of concern.

In each we see a television personality attempting to enjoy the touch screen facility and, well, finding the screen as frigid as a beer in a Reykjavik bar.

I don't speak Japanese quite well enough beyond "watashiwa kekong shtemasen" (no, I am not married) to know what is being said.

However, the fine Japanese news source, Japan Probe, was itself somewhat discombobulated by these two seemingly unrelated incidents of Windows 7 opacity.

I should say that both these clips appear to come from Fuji TV, so I hope that they didn't manage to obtain a rather duff copy of the operating system.

But there is something disconcerting about seeing the rather serious gentleman in the beige jacket and imposingly expensive watch fail to expand his view of the world. His face is so unbearably fixed, as if it too has been frozen in sympathy with what is happening on the screen.

It also affects one's blood pressure to see the chap in the waistcoat on the breakfast show "Tokudane", continually tap a file, then the Windows logo, then any and every part of the screen in a vain attempt to make for a little exciting television.

Indeed, one of his fellow televisual employees scuttles up and crouches down in front of the screen and tries to help him out. Yet still his screen finger skills bear as much fruit as, well, some fingers that attempted to make sense of Vista.

I am sure these were isolated incidents caused by inferior configuration or some kind of digital unfamiliarity.

However, I will be eagerly scouring the Web for sales figures from Japan.

NEW YORK--Whereas the Manhattan launch of Windows Vista was largely about the glitz, Thursday's event here was more hands-on tech demo than Hollywood premiere.

Most of the focus at the Windows 7 event was on showing off new PC models and showing how they connect with one another and with other devices, such as high-definition televisions, cameras, and photo frames.

Also on display were a large number of touch-screen models, both laptop and all-in-one desktop varieties, with many running Microsoft's Touch Pack, which includes Surface applications such as Virtual Earth and Lagoon.

But the device that attendees most wanted to get their hands-on--Dell's Adamo XPS--was quickly whisked away after being shown off by Microsoft's Mike Angiulo during the keynote.

Photos: Windows 7 launches in New York

* * * Another touchy subject
If any Windows Vista Ultimate owners were still holding their breath that Microsoft might yet rescue them with a free or ultralow-cost upgrade to Windows 7 Ultimate, they might as well exhale.

Vice President Brad Brooks told CNET News that the answer was a straightforward "no," though it is a decision he said he understands is disappointing. Brooks, as did Tami Reller in an interview earlier this month, pointed to the fact that some Ultimate owners were among those that held house parties and thus did get a free copy of Ultimate.

* * * On the plus side, there's no need to check a bag
In keeping with the event's more low-key nature, even the swag bag was a bit, shall we say, skimpy.

Inside was a T-shirt, a puzzle, a poster, a deck of cards, and the Steve Ballmer edition of Windows 7 Ultimate--essentially some of the same goodies given to those that hosted Windows 7 house parties. With Vista, by contrast, launch attendees got a copy of Office, a Windows game, an Xbox controller, and, of course Vista.

The Windows 7 bag itself was one of those reusable shopping bags, rather than the shoulder bag needed to hold all of the Vista goodies. That said, I'm sure that the Windows 7 launch had a much smaller carbon footprint.

* * * The other Steve
While Steve Ballmer was in new York, the other Steve--Windows unit President Steven Sinofsky--was across the globe, presiding over the Japanese launch of the product.

Although some of us in the domestic press core thought that perhaps Sinofsky was just trying to avoid us, Sinofsky said in his remarks in Japan that he was there because of the importance of that market.

"In fact, many people have been asking me, 'Why are you here working on the launch of Windows 7 in Japan and not with your boss in New York?'" Sinofsky said in his speech there. "We are very passionate and excited about the support that we're receiving from the Japanese market. And particularly because of the Japanese attention to the product quality and the development of Windows 7, which makes it so important for us to make sure that we're in touch with the Japanese customers."

Sinofsky also noted the fact that Japan is home to a number of PC makers and a leader in consumer electronics, such as the many televisions with which Windows 7 aims to connect.

Really, being in Japan is about being part of the Windows ecosystem that really starts here in Japan," Sinofsky said. "And it's great to be here to recognize the great contribution that everybody here in Japan makes to the development of Windows 7 for all of our customers around the world."

And here it is (on right), your Hallmark moment:

As Microsoft CEO Steve Ballmer prepares to launch Windows 7 in New York on Thursday, the stage is lit up with screens and changing colors.

(Credit: Sarah Tew/CNET)

Microsoft is rolling out Windows 7 around the globe Thursday, and we're bringing you live updates from New York, as CEO Steve Ballmer introduces Microsoft's newest operating system at a special event.

The product is now on sale online and at stores worldwide. Microsoft itself has started sales of Windows 7 and has expanded its online store to sell PCs from Sony, Lenovo, Dell, Acer, and Hewlett-Packard.

The one place where you won't find Windows 7 on store shelves is India because of a customs dispute there, though it is shipping on new PCs.

"It will be available in retail shortly," a Microsoft representative said on Thursday.

The following is a play-by-play of the launch event, which has concluded. You can check out all of CNET's Windows 7 coverage here.

10:30 a.m. EDT: Folks have been allowed into the Skylight Studios, where the launch is taking place. We're not in the keynote room, but they are serving mimosas. There's lots of modern art in the walls and artsy people running around in blue shirts. Each shirt has a single-word reference to Windows 7 features, such as "Snap" and "Peek."

10:35 a.m. EDT: They've let folks inside the keynote room, which looks like the inside of a comedy club with table seating in front and standing room in the rear. On stage are lots of flat-panel displays on the screen.

10:48 a.m. EDT: The two largest screens are now playing commercials with Kylie and other kids talking about Windows and Windows Live features.

10:50 a.m. EDT: It's not exactly Windows 7 news, but Microsoft is expanding testing for the online Office Web Apps--the browser-based versions of Word, Excel, and PowerPoint.

11 a.m. EDT: Event is kicking off. In the house, CEO Steve Ballmer and Kylie, the oh-so-cute kid from the Windows commercials. Speaking first, Microsoft Windows Vice President Tami Reller.

Windows' top saleswoman, Tami Reller, introduces the new operating system.

(Credit: Sarah Tew/CNET)

Windows 7 had 8 million beta testers, Reller noted.

11:02 a.m. EDT: For those who have an XP Netbook and have been wondering how to update it to Windows 7, CNET has an exclusive on Microsoft's plan.

11:05 a.m. EDT: Kylie speaking with really important announcement--she's now 5 and a half.

She's also there to do the intro of the main speaker.

"I'm a PC, and here's Steve Ballmer," Kylie said.

Ballmer is discussing his meeting with Kylie. "You were late," she interrupted. But Ballmer has a present: a small pink PC.

CEO Steve Ballmer greets Kylie, the young star of a Windows 7 ad campaign.

(Credit: Sarah Tew/CNET)

Now he's into his sales pitch.

"I'm Steve Ballmer, and I'm a Windows 7 PC, effective immediately," Ballmer said.

11:08 a.m. EDT: Ballmer said the secret sauce for Windows 7 was the testers, partners, and feedback.

One of the things the development team did was put up a "wishing wall" bulletin board, which collected various customer feedback from the technical to the emotional to the visual on how Windows could improve.

On to its features, Ballmer notes that Windows 7 works the way you want, simplifies everyday tasks. and makes new things possible, such as multitouch.

Ballmer notes that there isn't one killer feature, but rather things that appeal to different people.

"A road warrior like me--I like the new wireless features," Ballmer said. "Everybody finds the things that delight them."

Steve Ballmer is "fired up."

(Credit: Sarah Tew/CNET)

11:14 a.m. EDT: Ballmer brings on Brad Brooks, Windows' vice president of marketing. "Who wants to see a little bit of Windows 7?" Brooks asked.

He's showing how it's easier to import photos using Device Stage, a feature that hardware makers can use to put up custom options whenever their product is plugged into a Windows 7 PC. He takes the photos off the camera and makes a movie with Windows Live Movie Maker.

Brad Brooks, vice president of Microsoft marketing, takes over for Ballmer to provide a Windows 7 walk-through.

(Credit: Sarah Tew/CNET)

Now he's showing Media Center on an HP TouchSmart all-in-one PC. A deal with CBS means that all of its shows will be available over the Internet in Media Center. (Disclosure: CNET News is published by CBS Interactive, a unit of CBS.)

11:22 a.m. EDT: Brooks shows a new touch-capable Kindle application from Amazon.com. It will be available in beta test form next month, Brooks said.

11:25 a.m. EDT: Now he's on to HomeGroup, a feature that makes for simple home networking (the downside is that all the PCs have to be Windows 7 machines.)

Brooks demonstrates how HomeGroup can be set up in real time.

(Credit: Sarah Tew/CNET)

Brooks uses Windows Live to play a recorded episode of the "Family Guy" from his home machine in Redmond, Wash.

Brooks uses Windows Live to play a recorded episode of the "Family Guy" from his home machine in Redmond, Wash. The Fox show's creators have partnered with Microsoft to sell the operating system.

(Credit: Sarah Tew/CNET)

The last feature Brooks is showing is called Play To, which lets you control media from a Windows 7 PC and play it on other devices, such as a sound system, digital photo frame, or TV. He uses a single Dell laptop to stream media to about seven different screens.

The Play To feature wrangles various devices throughout the home, or "man cave."

(Credit: Sarah Tew/CNET)

11:35 a.m. EDT: With that, Ballmer is back.

"I hope it's pretty clear why we love Windows 7," Ballmer said. He notes that 300 million PCs will be sold this year.

He said the range and diversity of software is "unsurpassed, and that's at the core of the success of the PC."

"There's simply more you can do with these systems," Ballmer said. "Ninety-five out of 100 times, when people choose a device, they are choosing a Windows PC."

11:37 a.m. EDT: When Bill Gates and Paul Allen started Microsoft, they talked about a computer on every desk and in every home, Ballmer said. Today, he said, there's a PC "for every room, for every scenario, and for every person in every facet of their lives."

Ballmer says the range and diversity of software is "unsurpassed, and that's at the core of the success of the PC."

(Credit: Sarah Tew/CNET)

11:45 a.m. EDT: Now Windows General Manager Mike Angiulo is showing off some of the new PCs that are debuting with Windows 7, including an Acer desktop that can boot up in 15 seconds.

The Acer AspireRevo, shown off at the Windows 7 launch event, is now on sale in the United States.

(Credit: Sarah Tew/CNET)

He also shows a Dell machine that charges and docks wirelessly, as well as several touch-screen laptops and, finally, Dell's 9.9-millimeter-thin Adamo laptop.

Mike Angiulo of Microsoft shows Ballmer some of the Windows 7 hardware on display.

(Credit: Sarah Tew/CNET)

11:50 a.m. EDT: Ballmer wraps up. I'd like to thank CNET's Rich Brown, who helped make sure that Sarah Tew's photos got to you almost as quickly as she was taking them. Stay tuned for more coverage of the Windows 7 launch Thursday and, if you have questions, send them along.

Photos: Windows 7 launches in New York