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Alright, so there was a few reasons that made me have to reinstall Windows 7 onto my machine. I am running on a Lenovo Ideapad Y480. When Windows 7 was reinstalled, it asked me for my product activation code, and so I put in the one at the bottom of the computer.

Fast forward to where I am now, a few days later, and it says my product activation failed and I need to put in a new one.

I freaked out, but then tried to put in the SAME product activation code from the bottom of my computer, and it successfully worked. My only issue is I'm scared this will happen again and it will fail...Can someone back me up with proof that if it happens again (or multiple times) that nothing bad will happen to my installation?

And worst comes to worst, what will be disabled if my product key no longer works? And should I contact Lenovo/Microsoft to get the issue resolved in that case?

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If you don't change the hardware (CPU, memory, harddrive), then it's most likely that somehow the key stored in registry is corrupted. It can be from a virus, misbehaving program, or a bad sector in the harddrive.

You can backup your activation token using Advanced Tokens Manager, so you won't need online activation (and it will work forever, the online method will require a phone call after several activation) but it will only work as long as the hardware isn't changed.

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