One of the coolest things about the Windows 7 launch was the $29.99 student edition that Redmond was kind enough to offer to us legions of dirt poor college students. Unfortunately, the deal turns out to have been a little too good to be true. As soon as the deal went live, customers started to report issues. Digital River, the company Microsoft contracted to handle the sales and distribution of Windows 7, screwed up the download. Many customers report being entirely unable to get their new OS to install.
While no easily workable fixes have been provided to the students who purchased their discounted operating systems, Microsoft has now acknowledged the problem. PC World reports that a Microsoft support engineer has addressed the issue directly. Here is his posted statement;
"For those that have purchased Windows 7 from Digital River and receive the error 'We are unable to create or save new files in the folder in which this application was downloaded' when going through the 'Unloading the Box' [step]...Microsoft and Digital River are aware of the issue and it's being investigated," So there you go. It isn't a fix, or even a promise of one, but at least we know that Microsoft and DR have people working on it. Hopefully, we'll get an explanation for how the student release got mishandled so badly when we get the fix. I'm not keeping my fingers crossed though