Checked the bottom of the netbook, and indeed there is a COA sticker, and it does say Windows 7 Home Basic (it's late night and my sister is at bed so I can't take a pic of the COA, will take it tomorrow if you agree and attach it here). Another strange thing I also remember. When she brought the computer home, I had her open the system properties dialog and it said (back then) that it was fully activated and genuine.