Hope this helps GG

Do not update the Windows 7 Activation update...
look through your list of updates and delete or hide this code number:
KB971033

How??:

Quote:
1. Go to Windows Update
2. Click to View Your Critical Updates
3. Right Click the one Labeled 'Update for Windows 7' with update ID 'KB971033' or SP1
4. Click 'hide update.'

To uninstall the update:

1. Go to Windows Update
2. Hit Installed Updates (link at the bottom left corner). If that link isn't there, hit 'view update history' and hit the 'installed updates' link at the top.
3. Scroll down to the section titled 'Microsoft Windows' and look for update KB971033.
4. Right click it and hit 'uninstall'. Hit okay.
5. Reboot
6. Now check for updates again and follow the above method to hide it from installing ever again!