For those who have Windows 7 Release Candidate or Windows 7 Beta installed on their computers, well bad news for you because you are now unable to upgrade your current pre Windows 7 RTM build: 7600.16385 that’s recently has been signed off to be final RTM. And if you insist to upgrade to Windows 7 RTM, you will be receiving this kind of error message on your screen: You cannot upgrade this prerelease version of Windows 7. Go online to see how to install Windows 7 and keep your files and settings.

The reason behind the appearing of the above message because Windows 7 RTM is programmed to reject all previous versions of 7233. Well don’t worry too much, because there’s something you can do to bypass this problem, follow these steps to upgrade from Windows 7 RC or Beta to Windows 7 RTM build: 7600.16385:
1. Firstly you need to extract Windows 7 RTM ISO Image file to any folder or USB Disk using WinRAR.
2. Head to source folder, use your text editor such as notepad now to open “cversion.ini” file.
3. Alter the “MinClient” build number to a value lower than the down-level build. For example, change 7233 to 7000.
The default content cversion.ini or before it’s altered by you:
[HostBuild] MinClient=7233.0 MinServer=7100.0
This the cversion.ini content should look like after alteration you made:
[HostBuild] MinClient=7000.0 MinServer=7100.0
4. Afterward, you need to save the altered or updated file in the same location and then run the setup.exe to start Windows 7 RC Upgrade process.
5. An installation screen will appear to make you choose which Windows 7 version you want to upgrade: RC or Beta. And finish!
Source: Web Upd8.
And if you’re searching the steps on how upgrade Windows XP to Windows 7 RTM.
