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My friend told me I can download windows 7 from Microsoft. And buy a legit key for mch cheaper some where else? Any one ever do this?
This sounds sketchy, as far as I am aware you cannot do this, legally of course.
Microsoft's licensing agreement for the retail packs states that you can transfer the software license from machine to machine. So for packages like the Office H&S triple pack or a boxed copy of Windows 7, you can re-sell the software and the key, provided it wasn't used for an upgrade license and that you uninstall it on your machine.
OEM keys are a grey area. If, for example, you build a new PC with the board you already have and buy a copy of Windows 8, but the old OEM key is stuck onto a chassis, you're technically not allowed to sell that key off. However, the activation center will let you do it and carry on a usual if you use it for an install on another machine. So long as there aren't two copies that Microsoft can pick up, they don't seem to care.
No those are OEM only.Or just buy Windows 8 pro and downgrade, that way, when you ever want to go back to Windows 8 you have a legal and cheap route to follow.
Remember that MS licensing agreements have to obey local law. In some places EULA restrictions are non-binding and so possibly, resale of such keys in such jurisdictions is legal. Since the internet is international, people may have heard of that.
Also who knows, maybe Windows keys are sold for cheap in places like China where piracy is high and MS is happy to have customers at a fraction of their 1st world customer price.