Here is the latest. I had an instructor tell the class one time after a response to a question. Engage brain before opening mouth. This is embarrassing.
I was wrong about the sticker on bottom of laptop. It was for 7 Home Premium. The OS on the laptop was 7 Ultimate. Remember, I bought this used. Apparently, someone loaded 7 Ultimate on it after it was purchased originally. I wiped everything to get a fresh start and loaded 7 Home Premium and used the product key on the sticker and it activated fine.
As far as the "OEM" being in the product ID in the system window, that's normal. Even though the product ID I used from the sticker does not have "OMD" in it, the system window product ID will. It has something to do with the manufacturer of the laptop or PC. I spoke with MS and they said everything was good to go. By the way, here is the # I called and wait time was less than 2 minutes. US only 1-866-530-6599.
Sorry for steering everyone in the wrong direction from the beginning. Lesson learned. Take a look at your sticker and then look at the product ID in the Control Panel>system and security>system, then scroll to the bottom. Does it have "OEM" in it?
Thanks to everyone who responded.