Install will say product key is not valid, but can <Esc> and install will complete.
Activation will fail ("the software licensing service determined that this specified Product Key can only be used for upgrading, not for clean installations") until do the following:
regedit HKLM>software>microsoft>windows>current version>setup>OOBE MediaBootInstall change from 1 to 0
from elevated prompt >slmgr.vbs -rearm
Activation will then complete normally. (The above also resets to "30 days to activate")
In case anyone sees this and wonders, I have several full versions of XP which are no longer in use on any system. It simply would have been a waste of time to install one of these in order to then "upgrade" to Win 7
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