The leaked product key comes from an Windows 7 Ultimate OEM DVD ISO from Lenovo. The ISO allowed for hackers to grab the OEM-SLP (System-Locked Preinstallation) product key as well as the OEM certificate for Windows 7 RTM Ultimate via boot.wim.OEM.
According to reports, the crack can bypass Windows genuine Advantage validation and the results is a permanently activated cracked copy of Windows 7 RTM Ultimate.
According to reports, the activation process can also be circumvented on HP, Dell, and MSI computers running Windows 7 Ultimate OS (32-bit or 64-bit).
Microsoft's previous OS, Windows Vista, had been also circumvented using a similar technique.
Microsoft aknowledged the issue.
"We are aware of reports of activation exploits that attempt to circumvent activation and validation in Windows 7, and we can assure customers that Microsoft is committed to protecting them from counterfeit and pirated software," a Microsoft spokesperson revealed.
On the other hand, Microsoft seemed flattered by the crack.
"We're pleased that customers are eager to begin using Windows 7!" a Microsoft spokesperson added. Update
According to various sourced, Microsoft already blacklisted the Lenovo OEM Windows 7 Key "...We?ve worked with that manufacturer so that customers who purchase genuine copies of Windows 7 from this manufacturer will experience no issues validating their copy of Windows 7. At the same time we will seek to alert customers who are using the leaked key that they are running a non-genuine copy of Windows..."
Users reported that the "crack" still works, even as expected doesn't work with windows update or passing pages that require WGA. Nevertheless, the real test for Windows 7 protection mechanism would come after the product hits the market since all well known OEM vendors would have their own keys and would be impossible to blacklist...