From the KB
http://kb.roxio.com/content/kb/Creator/EE7...0?set-locale=en"The Activation Server Refused the CD Key error message after downloading and
installing Easy Media Creator 7
This issue is mainly caused by an incorrect character being entered in the CD Key.
Most commonly, you will need to replace a letter "O" with a number "0" or replace a
letter "I" with the number "1".
Resolution
a. Click on Start, then on "Run" and then type in "regedit", click on "OK".
b. Expand the "HKEY_LOCAL_MACHINE" key (looks like a folder) by double-clicking it (or clicking the "+" next to it).
c. Expand the "SOFTWARE" key.
d. Expand the "Roxio" key.
e. Highlight the "Creator 7" key by left-clicking on it once.
f. On the right side, double-click the value called "cdkey".
g. Delete the values that are already there and re-enter your cdkey all LOWER CASE
and WITH the dashes.
h. Click "OK", close the registry editor by click the "X" in the top right corner.
Now launch a Roxio application and try to activate."