If you go to Windows Update, you'll notice that KB971033 isn't automatically checked (selected) for install.
However, on a junker laptop I have, I noticed that it was all of a sudden giving me the whole illegitimate copy warning asking me to activate. That's with Windows Update turned off. Went ahead and got all the updates, except KB971033 and ran Hazar fix and is working like a charm.
*Anyone know if its a background service running that would check the activation without going to Windows Update? Through services.msc?
+Props to Starlight for sharing the news