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ArcMap 10 And Some Core Functions Apparently Not Working

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I installed and authorized a single use ArcGIS Desktop 10 (build 2414) on a Windows 7, 64-bit PC. Everything appeared to run smoothly and successfully. When I run ArcMap - some of the core functions don't work. Specifically - when I try and use the 'feature to polygon' tool - I get: Tool Not Licensed. Unable to execute the selected tool. You do not have the necessary license to execute the selected tool.

Has anyone experienced this? Any tips / way to fix this?

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