If you receive error "0xC004F061" when trying to activate Windows 7, it means you're using a product key for an upgrade version of Windows 7 and a previous version of Windows wasn't on your computer when Windows 7 was installed. To install an upgrade version of Windows 7, Windows Vista or Windows XP must be installed on your computer.
If you formatted the drive before starting the installation process, you won't be able to use the upgrade product key to activate Windows 7. To activate Windows 7, you'll need to install your previous version of Windows, and then reinstall Windows 7. For help with the activation process, go to the Microsoft Support
We recommend that you install Windows 7 with your current version of Windows running. If you want to format the hard drive, and you are using an upgrade version of Windows 7, you'll need to start your computer using the Windows 7 upgrade DVD, click Custom (advanced), and then click Drive options (advanced).
For more information about Windows 7 product key errors, see Windows 7 activation error: invalid product key. For more information about Windows 7 activation, see Activating Windows 7: frequently asked questions.
Article ID: MSW700057