Not Genuine means you need to register the OS. Win7 needs a valid key (should have a key on the computer case or in a booklet, etc.) You'll need to google how to add the key.
If for some reason your key isn't available at the moment, type cmd in lower left search box, then right-click on the cmd program as admin, type "slmgr -rearm" in the command box that opened, and press enter. It should prompt you to restart the computer IIRC. Been ages so might be missing a step. Google will help.
Once computer restarts, you'll be on a 30 trial. That'll allow you to update on windows update to service pack 1, get all the new security updates, etc. and allow you to find the key if not readily available.
As far as internet goes, you'll need to create a Home Network. Get into Network and Sharing, and create a connection.