It should do? Just burn the ISO to a bootable USB/disk and insert it to the PC you want to upgrade, and there will be an upgrade option once it sets things up. It's how I did it with all the PCs in the office, saved a lot of time and bandwidth on our slow connection.
Strange, I upgraded a PC with the same method the other day and it didn't ask for any product key. What version of Windows 7 is it? If it's enterprise then I don't think that's eligible for the free 10 upgrade.
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