Don't jump to conclusions on his attempts being legal or not!!! Some times fools jump to conclusions.
The author of this inquiry is most likely a member of technet plus! Technet Plus provides upto 10 Microsoft licenses for Microsoft Products including servers etc.
The problem is with Microsoft cludgy support and screwups.
For example, if you are running XP on a compaq device, and Microsoft advised to install SP3, and SP3 for XP was allowed to be installed, YOU ARE GUARANTEED TO DESTROY YOUR FIX MACHINE AND LOTS OF LABOR TO RESTORE THE OS AND BACKUP FILE APPLICATIONS. BY THE WAY, MICROSOFT HAD POSTED SOLUTIONS TO FIX THE PROBLEM, BUT REMOVED THE SOLUTIONS AND COMMENTS SOON AFTER REALIZING THAT THEY DID NOT HAVE A FIX. MICROSOFT INCLUDED THE COMMENT "WHOOPS WE GOOFED" FOLLOWED BY SOME LAUGH COMMENTS. THIS REPAIR IS BEYOND THE SCOPE OF GEEK SQUAD - IT REQUIRES A GURU!
Now as to the LICENSED WIN7 ISO COPY NEEDING A NTLDR ADDED TO THE COPY TO MAKE IT BOOTABLE THE ANSWER IS YES. AS TO TECHNETS ABILITY TO PROVIDE ANSWERS ON HOW TO DO IT - THEY DO NOT HAVE THE ANSWER. ONE TECHNET ANSWER IS TO USE MAGICISO, AN OTHER TECHNET PATH SUGGESTS ANOTHER COMMERCIAL PRODUCT CALLED "IMGBURN", and a third solution is to upgrade to Vista sp2, then take the ISO download for WIN7, have the tools kit installed and make a WIM out of the WIN7 ISO, electing to make the WIM bootable and then booting from the WIM to install WIN7 and of course being a Technet Plus subscriber, apply the Microsoft provided license when the WIM install requests.
In prior years Technet Plus had better employees, where the iso tools actualy could create a bootable dvd/cd from the ISO.
At the present time, Amazon makes ISO's of Microsoft OS's downloadable for College students even providing a licensed ISO at a significantly reduced price. THE TROUBLE IS VERY FEW STUDENTS CAN MAKE THE ISO IMAGE BOOTABLE.
ps. I as a member of Technet Plus have been able to make a legal copy of the ISO installable but the individual effort to do this is not worth the time. I recommend that anyone have this problem call Technet Plus support and demand to speak to a manager - this may force Microsoft to get their act together and hire competant employees!!