Downloaded offered free version of windows 7 ultimate 32 bit but product key was not included

I downloaded a Free copy of Windows 7 Ultimate off a Sponsored site who also installed lots of other stuff on my computer. It was my understanding it was only free due to the sponsors. It asked for a key code at the time which I skipped at install and went
to microsoft and found the program that shows all the microsoft key codes. I ran the program and then tried to install that key code. I  didn't tell me it was bad, but didn't work either. It said it was a default key code that could not be used to activate.When
I downloaded and ran the upgrade it showed all the rules for it being installed on only one computer.
If I can't get the correct key code for this sponsored version of windows how do we stop then from scamming us into thinking it's free and having to remove 20 unneeded programs from our systems.

There is no such thing as free Windows.
I would strongly advice you not to use the pirated copy you downloaded. It could very well contain malware. The same applies for your 'application that shows the keys': keygens are known to contain malware quite often. 
If you report the counterfeit to Microsoft properly, they will take appropriate actions to stop it.
https://www.microsoft.com/en-us/howtotell/cfr/report.aspx
http://www.microsoft.com/en-us/piracy/reporting/default.aspx
Note that this does not directly help you to get Windows licensed and activated. To do that you will need to purchase a license. Buy from a trusted source.
MCP/MCSA/MCTS/MCITP

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