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Any issues with that?

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Nope, shouldn't be any problems - MSDN gives you access to a full edition image.

That being said, remember the MSDN licence terms that it should only be used for development and/or testing.

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It will be for development. Getting Home Premium on a new laptop will save $150 when we already have an MSDN sub. – eych Nov 10 '09 at 17:02
You can save even more - don't say before as they may refuse to sell to you, but when you get the laptop - ring up the company or shop you bought from and say you do not want the Windows licence / do not agree to the terms and conditions, they should give you a refund of around £50-£60 - and it is perfectly legal. – William Hilsum Nov 10 '09 at 17:35
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I can report that I successfully took advantage of the Windows Anytime upgrade (Vista Home to Vista Ultimate.)

It preserved the old settings. All that I needed was the Product Key.

My point: technically upgrading from one Windows edition to another is easy. As it happens, I used an MSDN product key for my test machine upgrade. No problems.

All the hassles come from decyphering Microsoft's licencing rules.

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I've successfully upgraded win 7 starter (OEM) to Ultimate using an MSDN key which was generated in August 09...

initially I just wanted to upgrade my notebook from starter to pro (I don't need bit locker and other ultimate features)... so i've generated a pro retail key on MSDN today... upgrade failed... kept telling me the key was invalid..

not sure if it's to do with the pro vs ultimate or when the key was generated...

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