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I'm pretty sure I have done this in the past (it may depend on which version the licence is for). I think I had to phone Microsoft to authorise it which is simple enough.
It isn't a live CD as such, just an install disc. It used to be the case that there was an extra step to get from the dvd version to a USB version but they may well offer a USB version now.
aggi-
I've done similar to @aggi.
Downloaded the current full version from Microsoft's website to a USB. Pretty sure the installer can make the USB bootable these days.Installed. Skipped the license key if it doesn't work immediately then phoned them up and got an authorisation code. You only need to say it's the same machine and you're just reinstalling the OS fresh, they don't go interrogating you.
duncs
I'm having a nightmare trying to install ubuntu. My laptop originally came with Windows 7 and I still have the sticker with what I think is the licence code.
Can I just go and download a live CD of windows on a USB and install it using my licence code?
Cheers.