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Windows 7 Home Premium Upgrade

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I am replacing an old hard drive and it seems that I need to install a new operating system in my computer. I just want to know that is Windows 7 Home Premium Upgrade 32 Bit (OEM Branded) can be used to fully install a new operating system from scratch. Do I need to purchase a full version with a licence key or some other less priced product will do? Please suggest, I am waiting for your response.

 

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