Windows 7 Activation Update (WATu, KB971033) was released recently. It fixes many known activation hacks/cracks/exploits around genuine Windows validation technologies (typically used for piracy of Windows 7).
If your copy of Windows 7 is not genuine, or you have a legit copy but encountered activation problems earlier, KB971033 update might cause trouble again. Below are steps to uninstall the Windows 7 Activation technologies update (KB971033).
To uninstall WATu update KB971033
Go to Uninstall Program (under Start > Control Panel > Programs > Programs and Features).
Click “View Installed Updates”.
Click the item Update for Microsoft Windows (KB971033) and hit uninstall.
Note: KB971033 WAT update will be integrated in Windows 7 SP1. We will post any workarounds for the WATu component for Windows 7 SP1 as soon as we get them.