I have upgraded my x64 Vista to x64 Windows7. After adding to companies domain, it asked to activate windows again. but its giving the following error when i try to activate it : "Windows Activation Error : Error Code 0x80070005"
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Ok, here is the deal.
The problem happens because you have the "Plug and Play" service set by GPO. Sounds weird but have an explanation.
When you set the "Plug and Play" service by GPO, the service is set with default permissions:
Allow - BUILTIN\Administrators - Full Control
Allow - NT AUTHORITY\SYSTEM - Full Control
Allow - NT AUTHORITY\INTERACTIVE - Read
The permissions granted to the "Plug and Play" Service do not grant the Licensing Service (sppsvc) the appropiate rights to access the Plug and Play service.
So, you have 2 solutions
A- Disable the "Plug and Play" service by GPO and let the default configuration works instead the configuration set by GPO. After that, make "gpupdate /force /target:computer" to update the computer policy without restart.
B- Set the permissions in the "Plug and Play" service in the GPO to allow the activation. This issue happens in Windows Server 2008 R2 and Windows 7.
1- Open the Plug and Play service in the GPO. Go to Computer Configuration / Policies / Windows Settings / Security Settings / System Services.
2- Open the service and click in Edit Security.
3- Add the "SERVICE" user with the following allow permissions.
Run "gpupdate /force /target:computer" to update the computer policy without restart.
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