Apparently, the official $29 Windows 7 Upgrade package for students is not working properly for many users. Instead of downloading an ISO image file, two bundles and a .EXE file are unpacked and don’t function properly.

A fix for some is to follow a guide from DownloadSquad here with details on burning the files to DVD.

Microsoft is offering refunds to affected users. You can click here to read Microsoft’s official response.