Another question is then if it is completely legal, at least it is against EULA (one install, one activation per key). If you install Seven on a virtual machine using non-activated key, it should logically work.

If you install Seven on a virtual machine using the key which is already activated on another machine, you get an error message telling this key is already been used. I can assure you that I have purchased a separate license for every PHYSICAL MACHINE that I own.

If somebody could please help clarify this, I would greatly appreciate it, as I do not want to get my product key 'black-listed' and I need to get several Windows 7 VM's installed as soon as possible. However, I don't know that much about virtualization, so I am unsure as to whether a VM created with the new Windows Virtual PC will have a GUID different from that which is stored in my BIOS. So, if each VM shares the same GUID, it would stand to reason that I would not need a different product key for each Windows 7 VM that I am running. I am able to install, activate, and run multiple copies of Windows 7 on separate physical partitions with the same product key due to the fact that they all share the same GUID and thus, from Microsoft's perspective, they are all the same exact copy. I am trying to figure out if I will be able to install and activate Windows 7 on multiple VMs using the same product key on the same physical machine. I was hoping somebody here could help me out. I am not finding a definite answer to this question in my google and microsoft searches.

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