Not very good news for Microsoft when their Windows 7 Ultimate is already cracked. Not just cracked but this is a OEM with a master key. Most cracks of OS's stop dead in the water once a update is done. Microsoft sees the serial as a bad one and your dead in the water. This one is much different - its a OEM one that belonged to Leveno that was leaked on a Chinese forum. It has a master key to it so its not going to be a easy fix for Microsoft. The worst part is that Windows 7 wont hit the store shelves till October 22nd.

You can read more about it here:

Windows 7 Ultimate activation cracked with OEM master key (Updated)

Windows 7 Ultimate has been cracked and activated via OEM instant offline activation. Other editions of the operating system have yet to get the same treatment.

Windows 7 Ultimate has been cracked. The pirate milestone, reached almost three months before Windows 7 is set to hit General Availability on October 22, 2009, was achieved via OEM instant offline activation that passes Windows Genuine Advantage validation and keeps the operating system permanently activated. Previous cracks weren't as solid: while they may be working now, they can easily be disabled by Microsoft. This one won't be so easy.

Both 32-bit and 64-bit Windows 7 Ultimate can now easily be activated, according to My Digital Life. For Windows 7 Professional, Windows 7 Home Premium, Windows 7 Home Basic, and Windows 7 Starter, the OEM-System-Locked Preinstallation (SLP) keys haven't been leaked, so they cannot be OEM-activated yet. It won't be long before easy-to-use Windows 7 activation toolkits start appearing in the wild.