Yes, thank you, Prom, for telling Kaiser exactly everything I went through so I wouldn't have to yell at him over and over for not being able to read and follow directions.  It took me 10 minutes to solve the issue and laughed when after fixing mine I scrolled up in TS to see kaiser crying about the same thing.

Google is your fucking friend.  If you suspect it was an update, try googling the update.
http://lmgtfy.com/?q=KB971033

The BIE 7 you installed had this update ignored.  MS changed the status of the update from a normal one to a critical one.  That's how we got it.  You can still hide and ignore it as a critical update and I'm sure BIE and other will update their releases accordingly so that you don't need to understand any of this shit.

2nd link from the google... because I know certain people won't even bother clicking the above link.
http://www.geekmontage.com/how-to-uninstall-windows-7-activation-update-kb971033/

You ever think about the process of teaching someone to swim?  I wonder which method works best, a) describing to someone everything you have to do in a step-by-step fashion... or b) just tossing the fucker into the deep end.

If you can't swim, stay out of the water.  Being a hero doesn't pay dick.