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Windows 7 OEM Editions don't come in pretty boxes like Windows 7 Full Retail does, nor do they come with any manuals or documentation. The software found on the disc is the same as the one found on the Full Retail copy. The only real difference is that OEM Software cannot be returned once opened, and there are no exceptions. OEM Software is also tied to the motherboard it is first installed on, which means if you ever wanted to change your motherboard because you were upgrading your computer, you would have to buy a new version of Windows, because the one you have is only going to work with that motherboard, unlike the full retail version which can be transferred to a new computer; OEM versions cannot be transferred.

So, when asking if OEM is better than the Windows 7 Upgrade; technically, OEM can only be used on one motherboard and the upgrade can only be used on one Windows 7 that is already activated, and once you use the upgrade, it's no longer useful anymore.

I would have to say that the OEM is definitely better than the Windows 7 upgrade, because you can at least use the OEM more then once in case something ever happens with your operating system plus the upgrade is only good if you have a Windows 7 already installed.

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