Basically, copy of all of the files from the retail disc to a folder on your hard drive, pop open the "sources" directory in that folder, and open up the file called "cversion.ini" in Notepad. Change the number 7233 to read 7000 (you're telling it the minimum version that's allowed to upgrade). Save it, and now you can do an upgrade install (hurray no paying for a full version). You might see some slight wonkiness, but Max PC says they've had some "good results" this way. [Maximum PC]

So go and get the Windows 7 Release Candidate. That one will start shutting down every two hours in about a year.

BEFORE INSTALLATION
You've got to walk before you can fly, friends.

Minimum Requirements
• 1GHz processor
• 1GB RAM
• 16GB open on hard drive
• 128MB graphics memory with DirectX 9 support (optional, to run Aero)

Download a Copy
Windows 7 available from Microsoft until February 10th here:
32-Bit Windows 7 (use if you have less than 4GB of RAM)
64-Bit Windows 7 (use if you have 4GB of RAM or more)
Otherwise, you'll have to use Bittorrent.

Get a Product Key
You get a product key when you sign up to download the beta, but if you've somehow got the beta bits but no product key, go here. They'll set you straight.

Make a DVD or Copy to a Flash Drive
Either burn the Windows 7 image file to a DVD, or put the image file on a 4GB+ USB drive and use a mounting program to load it.

Dual Booting It?
If you want to keep your current OS and programs intact, check out how to set up a dual-booting installation of Windows 7.

INSTALLATION
You have a few options. The simplest is upgrading from your current Windows OS, but that can only be done from Vista. The other two options are a clean install (on a regular machine or on a netbook) and a Boot Camp install on the Mac.

Upgrade Install
This is by far the easiest way to go that will preserve all of your programs. Just create your Windows 7 DVD or flash drive and open the installer on your desktop like any other program. Windows 7 will take over from there.

Clean Install
A clean install is necessary if you are running XP, but it's also great for Vista users who want to start from scratch or would like the peace of mind of dual booting with another OS. To start from scratch, format your drive as you normally would and when you reboot, use a DVD with the Windows 7 installer image burned on it. That or boot from the DVD and follow the Custom options for a clean installation.

If you'd like to dual boot, you'll need to set up a partition first. Lifehacker has a great guide for that. Just make sure the partition is at least 16GB. With a new partition in place, most users will be able to reboot their system with the Windows 7 DVD in the drive and install the OS to said partition. But if you activate the partition and restart before the OS is installed, you could be in for a hell of a long night of troubleshooting.

Netbook Install
Netbooks handle Windows 7 surprisingly well. Just keep in mind a few points. Storage is a premium on most of these systems, so many will not be eligible based upon that criteria (you need 16GB free). And Aero is not happening since these systems lack the video memory. But there's a complicated workaround to activate Aero if you enjoy the torture of a laggy machine.

Boot Camp Install
If you own a Mac, you're looking at a Boot Camp installation of 7. Both 32-bit and 64-bit versions can work, but older Macs are best sticking to the 32-bit version. Boot Camp 2.1 supports the 64-bit installation in most recent Pro-branded systems.

Have your Windows 7 DVD (or flash drive with a mounting program) ready, and open up Boot Camp. You'll need to make a new partition that's at least 10GB in size (we'd recommend more, since PCs require at least 16GB). Follow the prompts, and Windows 7 will install.

One catch to keep in mind, however, is that you may need an OS X DVD to load necessary drivers into Windows 7 after installation is complete.

EXTRAS
Set a Backup Drive
Vista made backing up easy, but now you can easily customize just what files and folders you'd like to backup. Go to:
Control Panel -> Backup Your Computer -> Set up backup
It'll guide you from there.

Setup Index Folders
Make sure that Search is including the folders you want...and only the folders you want.
Start -> Search Programs and Files -> Type "index" -> Select "Change Search Options..."

Rock a Second Monitor
Oh, you know you've always wanted to. Now that you have Windows 7, hook up a second monitor in just two steps. Hit Win+P and choose an option. Done!

[More info about Installing Windows 7 and dealing with Boot Camp]

As we've reported, various Windows security hounds have found that the new, less-naggy User Account Control (which doesn't bug you as often when potentially malicious apps get their fingers in your system) can be easily exploited to bring the nastiness to your PC. Many of said hounds have concluded that, with the UAC hole, Windows 7 is significantly less secure than Vista.

But for some reason, Microsoft won't fess up. When Mary Jo pressed them on the issue, they came back with this statement, which seems to contradict many of the observations of those publicizing the exploit:

* “This is not a vulnerability. The intent of the default configuration of UAC is that users don’t get prompted when making changes to Windows settings. This includes changing the UAC prompting level.
* Microsoft has received a great deal of usability feedback on UAC prompting behavior in UAC, and has made changes in accordance with user feedback.
* UAC is a feature designed to enable users to run software at user (non-admin) rights, something we refer to as Standard User. Running software as standard user improves security reduces TCO.
* The only way this could be changed without the user’s knowledge is by malicious code already running on the box.
* In order for malicious code to have gotten on to the box, something else has already been breached (or the user has explicitly consented)”

Windows 7 is, of course, still in beta, but the tone of denial here is troubling. Hopefully a change of tune is in order, as it would be a shame to see security be the downfall of an otherwise fantastic improvement over Vista. For more analysis check out Mary Jo Foley's blog: [All About Microsoft]

This screengrab, which purports to be from a fresh Win 7 beta build number 7025, shows Starter, Home Basic, Home Premium, Business and Ultimate choices. We all know that the current beta is already labeled Windows 7 Ultimate, so unless MS is going nuts with the superlatives, Ultimate does imply the availability of something "less-than-Ultimate."

And, since Microsoft hasn't said anything to make us believe they'd be changing their repackaging fetish we've seen with XP and Vista, this doesn't seem at all surprising. Sad, but not unexpected. [PC Beta - Thanks, Pete]

It isn't much, but it will save time for novices not accustomed to poking around in the registry. With that in mind, you may want to check out the guide on the project page so that you are sure about what each of these tweaks actually does. SetteMaxer is a free download, but like the OS itself, it is still in the beta stage so there may be a bug or two in there. Either way, it is a stand-alone file and can be deleted if necessary. [SetteMaxter via Lifehacker]

To automatically read the most recent Windows 7 posts, hit this tag (and bookmark it).

Windows 7 Beta Installation Advice
(Note: The beta is available until February 10th, though downloads may be limited, so hurry!)
• How to Download and Install Windows 7 Beta
• How To Install Win 7 on Macs with Boot Camp
• Understanding the Windows 7 Beta Agreement Fine Print

Windows 7 Feature Analysis:
• Why Microsoft Should Give Windows 7 Away
• Why the Windows 7 Taskbar Beats the Mac OS X Dock
• Why It's Smart To Go 64-Bit With Windows 7
• Windows 7 Runs Better Than Vista On Netbooks
• Why Windows 7 Will Beat Vista Overall

Windows 7 Beta Tips
• The Calculator Now Calculates Your Mortgage Payments and More
• Miss Vista's Quick Launch? Here's How You Get It Back
• Registry Tweak Fixes Window Gadgets and UAC Incompatibility
• Adding Extra Monitors Is So Easy a Caveman Could Do It
• 'Play To' Media Control Might Take Over Your Whole House
• Xbox 360 Streaming Is Buggy For Now, but it Still Works...Kinda
• Windows Explorer Preview Pane Works Much Better Than Vista's
• The Windows Key Is Actually Useful Now!
• Maximize and Dock Your Windows by Dragging to the Screen Edge
• Where the Hell is Add/Remove Programs?
• ISO Disc Image Burning Is Built Right In
• Device Stage Gadget Interface Is Gorgeous (When Supported!)
• Libraries Replace the Antiquated Virtual Folders Feature
• Now You Can Choose Which Folders to Back Up and Create System Images
• Fix That MSI Installer Bug And Get Apps Running Again
• Windows Home Server Almost 100% Compatible Already
• Gadgets Integrated to Desktop (But Still Buggy in Beta)
• New WordPad Opens Word 2007 XML Docs
• Careful: Windows 7 Beta Sleep/Hibernate Is Still Buggy
• Windows 7 Taskbar UI Tips
• Inside the Amazing Problem Steps Recorder

Windows 7 General Observations
• Huge Security Flaw in Windows 7 User Account Control
• Windows 7 Is OK, But Can It Run Crysis?
• Windows XP, Vista and 7 Tested For Multicore Performance, XP Still Wins For Now
• Windows 7 Performance Meter Goes Up To 7.9, Still Not Fantastic For Gaming Measurements

Funny—and Not So Funny—Windows 7 Experiences
• The First Windows 7 Blue Screen of Death
• 131 BSODs We'd Rather See
• 25 Features You Definitely Won't See in Windows 7

The fine print we're talking about is Microsoft's Pre-Release Software License Terms for Windows 7 Beta, commonly referred to as a license agreement. It's a long scrolling list of text, the kind you usually skip during installation as you hammer the install button and get the party started. Trouble is, beta agreements are very different than final-release software agreements, and this text isn't available on Microsoft's website (but now it's available on Giz).

Assuming you didn't read it, we read it for you, and can now explain the contract between you and Microsoft that dictates how you use the software, what happens when it expires, what information they can scoop for you and sets the price for your firstborn in trade. Kidding about that last part, but pay attention:

You're Sending Data to Microsoft
Windows 7 is a beta product, which means it's in a testing phase—you're the tester. The whole point is for Microsoft to discover and squash any bugs that pop up, and maybe polish some of the user experience along the way if anything sticks out. Guess what? To do that, Microsoft needs to collect your data. Some of this data scooping is turned on by default, beaming information back to the mothership without needing to warn you that it's doing so. Common information includes your IP address, OS version, hardware ID—device manufacturer, name and version—that kind of thing.

The Windows 7 beta automatically sends error reports back to Microsoft. These "might unintentionally contain personal information. For example, a report that contains a snapshot of computer memory might include your name. Part of a document you were working on could be included as well." That sounds kinda dicey if you're Jack Bauer or the keepers of the Coca-Cola formula. But Microsoft says it doesn't use the info to figure out who you are, so no worries if you're just paranoid Microsoft is trying to hunt you down for some reason. Also flicked on by default is the Customer Experience Improvement Program (CEIP), which "sends anonymous information about your hardware and how you use this software to Microsoft."

Microsoft lays out what kind of information is transmitted by every major feature in detail here, including when the feature does it, how Microsoft uses it and if you've actually got a choice about sending the info. (Activation, no choice or control there, but Gadgets and network connectivity monitoring, yes.)

Sometimes Microsoft doesn't tell you when this on-by-default reporting telemetry can be turned off, but bear in mind that if you have to hack too far into the system to shut it off yourself, you may be violating the agreement by not using the software in the intended manner. As it's put so bluntly: "You may not work around any technical limitations in the software."

Generally speaking, Microsoft is clear that it won't share the info it gleans with the entire world, but they do reserve the right to "share it with others, such as hardware and software vendors" in order "to improve how their products run with this software." So like Dell and Quicken might be going through your crash reports and seeing what kind of computer you use. But you want their stuff to work with Windows, right?

It's More Like a Rental
This has been well-publicized, but in case you didn't know, the Windows 7 beta is a time bomb that will self-destruct on August 1, and might take your data down with it: "The software will stop running on August 1, 2009. You may not receive any other notice. You may not be able to access data used with the software when it stops running." (Another excellent reason to dual boot.) It's possible they could extend the length of the trial, but since all expectations are that the final Windows 7 is gonna ship by July, expect that Aug. 1 lock down to happen.

Did you think Windows 7 was a free ride and you own your very own copy now? Shnope. Microsoft is very clear here: "The software is licensed, not sold. This agreement only gives you some rights to use the software."

Part of the terms here—of Microsoft still owning Windows 7 and you owning approximately dick—are that you can't tell anyone benchmark results unless you get Microsoft to okay it first. You also can't reverse engineer Windows 7, "work around any technical limitations in the software" or use it to host your own server.

Oh, and if Windows 7 wipes out the indie film you've been working on for two years, blows up your mega-super-computer that cost you $20,000 to put together or otherwise completely screws up your life, Microsoft will only cover five bucks. Max.

It's for Testing Only
You can install and use as many copies as you like, but Microsoft says "You may not use the software in a live operating environment unless Microsoft permits you to do so under another agreement." So no using Windows 7, for like, reals. And you can only use it with one virtualization environment per device—so no doubling up Parallels and Fusion either, you rule-breaker you.

You Are Not Permitted to Circumvent Validation.
Well. Okay then. And yes, it's gonna keep checking "from time to time" that it's valid software. If Microsoft sends out an update to the validation software, odds are, they aren't going to tell you about it either—it can be downloaded and installed without telling you—meaning you can't turn it off.

Did We Mention This Is a Beta?
Hey guys? Windows 7 "may not work the way a final version of the software will. We may change it for the final, commercial version. We also may not release a commercial version." That would do lovely things to Microsoft's stock, eh?

Conclusion
If you want the really long version, here's the text of the full agreement. Here's the short version: Microsoft owns Windows 7, it's beaming back information to the mothership that you may or may not able be able to turn off, and you're totally on your own, sucker. Enjoy Windows 7!

Something you still wanna know? Send any questions about Windows, Ballmy, or the McRib to tips@gizmodo.com, with "Giz Explains" in the subject line.

Sure, 2.5 million seems like a lot, but those downloads will go quickly—so get on it ASAP (and expect the site to be overloaded). If you do miss out, no worries. You can still pick up the download on BitTorrent.

UPDATE 12:10 PST: Apparently there was some confusion regarding the start times. Word is that downloading would begin at 12 Noon PST / 3PM EST. That time has passed with no change—so you might want to keep checking back in.

UPDATE 2:00 PST: Lifehacker is reporting that the Microsoft 7 beta has been pulled due to to the unexpected strain on their servers. While they shore things up, there is no ETA on product keys.

UPDATE 5:05 PST: The official Windows 7 beta download link is still down, but Lifehacker has managed to track down the direct download links to the 32-bit and 64-bit version. [Microsoft]

When I asked him if it was an unprecedented move, passing out the whole operating system to anyone and everyone who wants it, he said that technology limited previous rollouts. Windows 95's beta test group was 600,000 strong, downloaded mostly from dial-up via FTP sites. He says he even remembers putting out DOS in 1992, and getting 50,000 downloads—within a day. This, though, the combination of the TechNet and MSDN subscriber downloads with the open beta for all, will dwarf those previous OS beta runs. So I asked the obvious question: Are people going to dump Vista for this, wholesale?

I can't speak for what people are going to do. What we're trying to do is involve people in the development of Windows 7 in a way that anyone can choose what their appropriate level is—hardware and computer makers who are deeply involved because that's their job, enterprise customers deciding to dedicate people to work with us at a very high bandwidth, we have other enterprise customers who want to kick the tires; we have enthusiasts—your readers—going crazy to be able to download it and that's awesome.

We have different ways we have people involved. At one extreme, they're part of the professional beta programs and they log bugs and they have feedback. And at the other extreme, all we need them to do is run the product, and their installation telemetry—things that are optional as part of the retail product are part of the beta, the telemetry, what devices you plug in and all that, and at some level, those are all super helpful to us.

I mentioned to him that one the recurring comments from the original Windows 7 walkthrough was that this should be a service pack or, better yet, a free upgrade to Vista. So I asked: Is this a free upgrade to Vista?

Technically if you have a Vista machine you can install this and it will install an upgrade. That's part of what we're letting people test. But that's not a product offering. This is an offer to test the product. I would remind readers that this is a beta product. This is not a done product. That means there are bugs in it that are in the process of being fixed, it means there are bugs we're going to discover, and we're not servicing it like a real product.

Basically, he's saying enjoy it, but know its limitations in trying to be the be-all end-all answer to your Vista problems.

If there's anything more from the interview that I need to share with you, I'll publish it tomorrow. Meantime, let us know how your Windows 7 beta experience is going. [Microsoft Windows 7]