Windows Anytime Upgrade feature in Windows 7 allows users to upgrade their already installed operating-system into higher versions letting them bypass limitations associated with lower editions without requiring to reinstall again, with this feature all the user needs to do is to buy an upgrade key from Microsoft online or a local retail and upgrade their OS edition without hassles in less then 10 minutes. The news is that hackers have now cracked open the Windows Anytime Upgrade key generation algorithm for Windows 7 and released the utility "Windows 7 Anytime Upgrade CD-Key Generator" which churns out illegal upgrade keys allowing pirates to upgrade and activate Windows 7 OS to higher SKU's like from Home Premium to Professional or Ultimate without paying Microsoft a dime.

RemoveWAT would be the most popular and easiest to use Windows 7 crack out their, the hack once applied allows pirates to enjoy Microsoft's newest operating-system while retaining genuine status and receiving all updates on an illegal copy of the software. RemoveWAT allows illegal activation of Windows 7 and Windows Server 2008 R2 by completely removing Windows Activation Technologies (WAT) from the computer, the scoop is that the utility has now been updated to v 2.2.5 allowing bypassing of Microsoft's recent anti-piracy WAT update KB971033.

According to the latest changelog the utility now features disabling shutdowns on 90 day trial builds, disables the trial time-bomb in evaluation versions and takes care of KB971033 update even it it's already installed.

The Windows 7 anti-piracy update which pirates were fearing is now live getting distributed as KB971033 via Windows Update, the Windows Activation Technologies (WAT) update is tagged important and features detection of more then 70 known Windows 7 activation hacks and cracks informing users of their genuine copy status taking actions if usage of piracy is detected.

However, pirates can still dodge this update by simply not opting to install it or even uninstalling it from Windows Update -> Installed Updates section, they can even restore to a pre-KB971033-update state as Windows creates an automatic restore point before installing updates (seems not to work from user comment below).

Microsoft will be pushing a new Windows Activation Technologies (WAT) update before end of February for Windows 7 users with a set of anti-piracy measures which would disable more than 70 known hacks and cracks used by pirates to activate illegal copies of the software.

In an official blog post by Joe Williams, General Manager, Genuine Windows the company announced the new update stating :

Activation exploits are sometimes called “hacks”, and attempt to bypass or compromise Windows’ activation technologies. This new update is further evidence of Microsoft’s commitment to keeping customers and partners secure. The update will determine whether Windows 7 installed on a PC is genuine and will better protect customers’ PCs by making sure that the integrity of key licensing components remains intact.

So, what are the risks of activation exploits? Searching for, downloading, or installing activation exploits or counterfeit software on the Internet is risky, because sites that advertise these pirated products often contain malware, viruses, and Trojans, which are found bundled with or directly built into the activation exploit or counterfeit software. A study by research firm IDC, The Risks of Obtaining and Using Pirated Software, shows that one in four Web sites offering counterfeit software attempted to install unwanted or malicious code upon downloading. And this rate is rising. Media Surveillance, an anti-piracy solutions company based in Germany, recently downloaded more than five hundred pirated copies of Windows 7 (and Windows activation exploits) and found that 32% contained malicious code. These are very disturbing figures – especially when considering that resellers may be using these downloads to claim that the PCs they sell include genuine Windows.

The update will be marked as “Important” and will get distributed first to the Home Premium, Professional, Ultimate and Enterprise editions, one thing worth watching here is that what will happen to pirates who have completely removed WAT from there computers using one of the most popular Windows 7 activation hack RemoveWAT - what will get updated if the feature is completely removed from the OS ?

In somewhat major blow to anti-piracy efforts Microsoft Windows 7 Ultimate activation crack is now available before the official release of the software, the OEM SLP Master Product Key based activation crack completely bypasses the Windows Genuine Advantage validation allowing users a fully functional unlocked copy of the operating-system, the crack was made possible by extracting the OEM certificate and key from .wim files contained in leaked Windows 7 Ultimate OEM DVD ISO from Lenovo.

Microsoft makes use of SLP (system-Locked Preinstallation) for pre-activating Windows meant for volume licensing by OEM's like Lenovo and Dell, Windows 7 makes use of OEMID (identified by BIOS SLIC table) to identify OEM computers for pre-activation, crackers have now came up with automated utilities (as shown above) which make use of Lenovo's OEM key and OEMID to fake identification as an OEM system allowing Windows 7 Activation.

As expected Windows 7 Beta 1 (Version 6.1.7000.0.081212-1400) got leaked and is now available on BitTorrent and other file-sharing networks, add to that pirates have managed to get past the trial limitation set to expire this build on 1st July 2009 and now there are quite a few activators and cracks floating around the internet all based on some trick extending the trial period by resetting the trial-timer, allowing users to use Windows 7 Build 7000 as long as they want without activating.