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If you connect to your Windows Phone 7 with a Windows Live ID, you will receive an activation code. If you receive an error message the first time you connect to Windows Live ID on Windows Phone 7 indicating that an activation code is required to continue configuring your phone, you may be interested in this item.
The error message may look like this :
ACTIVATION REQUIRED. An activation code is required before we can configure your phone. Please contact customer service. You can skip this step and execute it later. Call for assistance.
In Windows Phone 7, a background check is performed on the first Windows Live ID connection before the connection process ends and a connection to Windows Phone 7 services such as Xbox LIVE, Marketplace and Hotmail is established. In the rare event that this scan fails, you may be asked to enter an activation code before opening a Windows Live ID session.
If you tap the required Activation screen, skip the Windows Phone 7 and Windows Live ID logon activation screens, but you can still use your phone to make calls, run applications, send text messages and surf the Internet. The next time you try to use a Windows Phone 7 feature that requires a Windows Live ID connection (such as Xbox LIVE games, downloading a market application, or adding a Windows Live email account), you will be prompted to connect with your Windows Live ID.
The Required Activation screen appearance does NOT reflect a problem with the Windows Live ID with which you want to connect.
KB2431699 means that to get an activation code for Windows Phone 7, you must contact Microsoft customer service. To contact Microsoft customer service, Windows Phone 7 customers in the United States can call 1-800-MICROSOSOFT. For contact information for other countries, see Microsoft.
When you receive the new activation code from Microsoft Customer Service, you must enter the activation code in the appropriate fields of the required Activation screen, and then press Activate.
If you have already interrupted the Windows Live ID connection by touching the required activation screen, you can restart the Windows Live ID connection by adding a Windows Live account to your phone.