How to install windows 7 on another computer?

I recently bought a computer with windows 7 installed. My sister moved in with me and my mom, and her dad (a control freak :P) has locked her account down on her computer so much the guest account has more privileges. Her computer has windows 8, but, I was wondering if I could somehow format her hard drive and do a fresh re-install of Windows 7? How would I (If I can) go about doing that?
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