Block the inetconnection and never allow it for the application!
Make sure that displaying hidden files is enabled in your windows settings!

Start the installer and make a full installation, when you arrive to the place where you have to choose between:

"I have signed up for a trial..."
"I already have a product serial number"
"I have a valid license file..."

start Keygen.exe with admin rights!
Click Patch button.

Browse the temporary install folder (it should be something like either 
Users\<YourUser>\AppData\Local\Temp\mia"X" or Documents and Settings\<YourUser>\Local Settings\Temp\mia"X", 
where "x" is a random number)
NB : If there are multiple miax folders (because of previous installs) select the one
     where you have licensemanager.exe 
     DO NOT forget to enable displaying hidden files/folders or you may not see the mia"X" folder(s)

If patching was successful select "I have serial number", there you will see the Registration Code!
Press the Generate button in the keygen to have a serialnumber and then paste the Registration 
Code to the approppriate field and press Generate button once again. It will create 3 files:

er97dev.slip
ibxe7.slip
RAD Studio Activation.slip

Now close the form (where you copied the Registration code from) then 
select "I have a valid license file" and click the import button and browse RAD Studio Activation.slip
After you have successfully imported the license file, press OK and installation starts.

DO NOT CLOSE THE KEYGEN YET!

When the installation is finished, you can install ERStudio (separate installer in the iso).

If you have everything installed press Patch button again because some of the installed 
files need to be patched too.

The other 2 .slip files should be manually copied to these locations:

For ERStudio:

depending on the OS it should be either

c:\Program Files\Embarcadero\ERStudio9.7DE\license\

or

c:\Program Files (x86)\Embarcadero\ERStudio9.7DE\license\

or start LicenseReg.exe/licensemanager.exe inside the ERStudio folder and import the slip file, then save on exit when it asks.

for InterBase XE7:

depending on the OS it should be either

c:\Documents and Settings\All Users\Application Data\Embarcadero\InterBase\gds_db\license\

or

c:\ProgramData\Embarcadero\InterBase\gds_db\license\

Note:

It is possible that the registration code for rad studio doesn't match with interbase x7 
To find that out check sanct.log in either documents and settings\<YourUser> or programdata\<YourUser>.
If it doesn't match you can see an error and you can also see the expected registration code 
paste it to the keygen and regenerate a new slip file. In this case you only need the new ibxe7.slip

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