Unable to activate Windows 7 Home Premium

I'm trying to activate Windows 7 Home Premium and I continuously receive this error upon entering a VALID product key.



Anyway to get around this? And what happens if I just do nothing for the remaining time I have left to activate?

 

Call Microsoft support - they will be able to help you. You can mention that you run Windows on Parallels but it should not make any difference unless it is Boot Camp VM