Krisando: Also once activated make an image, instead of having to activate it every time it will work. So you can install on multiple pcs without having to ring up the Microsoft Indian customer service to activate.
This didn't even work with XP Pro, so I very much doubt that it will work with Windows 7. Windows from XP onwards will check to see if anything has changed from when it was originally activated. This includes LAN adaptor MAC address, motherboard BIOS signature, Hard Disk signature etc. If too many things are different, you will need to activate it again. Phoning up the Indian call centre multiple times within a few days concerning the same installed copy of Windows is bound to arouse their suspicions...
Having said that, I am pretty disgusted at the Windows 7 retail pricing as well. I just bought a new laptop yesterday and of course it came with Vista -- the Business version to be exact. No problem, there is a Windows 7 Professional upgrade for that at the quite reasonable price of NZ$47 via Toshiba Australia. I have ordered that already, and have no quibbles with paying that sort of price.
However, my wife's laptop is a different story. Only about a year old but came with Vista Home Basic installed, which she hates with a passion. So I was looking at buying Windows 7 for her as well. BIG PROBLEM: There is no upgrade path from Vista Home Basic at all. You have to buy a full version of Windows 7 and the cheapest I have seen is Windows 7 Home Premium costing $389 at DSE. I think this really sucks on Microsoft's part. They have deliberately trapped people running Vista Home Basic, with no upgrade path.
For this reason, I am asking my son who lives in Canada to investigate getting me a copy. The Windows 7 retail prices in NZ are a complete rip-off when you compare the relevant exchange rates as per Old3eyes post above. It is so easy to get software in from overseas if you have friends living over there. We have done it many times. Just last week I brought in a Bluetooth Car Kit from Hong Kong for about 30% less than the exact same unit here. I don't mind paying a little bit extra, but I do object to being screwed just because we live in a small country.