I had the same problem when trying to upgrade from VS2005 to VS2008.
These problems normally happen because a previous Visual Studio version was not totally uninstalled.
You will not be able to install or uninstall any VS version until you completely erase all traces of this previous version. However, completely uninstalling VS is a very difficult exercise.
Here are some articles that contain methods of uninstalling VS.
Just follow all the advice and execute all the instructions, even if it seems that some of them might not pertain to your case.
How to remove Visual Studio 2005
Uninstall Visual Studio (All Versions)
How To Manually Uninstall Visual Studio with MSDN Library
Solutions for "This copy of Windows 7 is not genuine" problem
You need to solve this problem before installing VS2008.
The above article lists three ways of doing so:
- Trying once more your Windows 7 Product Key.
- Using MGA Diagnostic Tool to resolve the problem.
- Activate Windows 7 using Phone.
The last method is required, if by any chance your Windows 7 serial number was discovered and used by hackers (using a serial number generator). In that case, the serial number is black-listed in the Microsoft Activation database. However, if you can show proof of ownership, the Microsoft person on the phone could give you a replacement serial number.
If the problem is rather that you're using a Beta version of Windows 7, the best solution is to reformat the hard disk and install the Windows 7 release. Please note that any serial number you got with the Beta is no longer valid, so if that's the case, you'll need to buy the Windows 7 release.