If its a upgrade disc, you have to have some sort of Windows OS already installed. XP, Vista. You can still boot from CD and do a complete 'fresh' install vs. in place upgrade. But it checks for a previous install.
The key will only activate if the upgrade option is used, a fresh installation is not possible.
If you would like a fresh installation without using a prior installation vista or xp to upgrade from simply do a fresh install using the upgrade disk, then upgrade the clean install you just did (so the key activates). Works like a charm. Imo it is the only upgrade option that isnt FAIL.
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