It's really easy mate. Forget running this .exe file. Download via torrent an Ultimate version, check it is legit (e.g. check its MD5), remove the ei.cfg file, and burn the image. You now have a retail, all versions, Windows 7 install disk. Install your version BUT DO NOT ACTIVATE. Upgrade the non activated OS you have just installed and use the supplied student key. Job done.
Sounds good. What is this ei.cfg file and is it present on my retail version of W7?