Windows 7 Activation Error : invalid Product Key Upgrading From Windows XP to Windows 7, Activation Error 0XC004F061

I have Windows XP running in one of my laptops. I thought of upgrading it to Windows 7 and purchased a Windows upgrade from microsoft.
I formatted the Windows XP OS and tried installing windows 7. I got this peculiar error which said ” Invalid Product Key”.Activation Error 0XC004F061
I followed the correct steps and was wondering why am I finding this error.
I checked few documents and found that I need to retain my old OS (In this case it is windows XP). Retain your old version – windows XP, Windows Vista intact while you are upgrading it to Windows 7.
I installed my Windows XP and tried upgrading it. Now I’m able to perform this upgrade without any error.
Other than this invalid product key error occurs when you mistype the product key, typed a product key relevant to older version (say if you upgrade from XP to Windows 7 you need to type product key information of Windows 7 not Windows XP). These fixes will help fixing “invalid product key” error.