Windows 2008 is very similar to previous Microsoft operating systems. The install process is more streamlined. Windows 2008, like Windows Vista requires activation before you can unlock the full functionality.

Normally during the installation process you are prompted for a License Key. Then after the installation is complete you will be prompted until you activate the server. You must activate within 60 days.

With Windows 2008 a new system has been introduced called Volume Activation 2.0 (VA2). The VA2 system no longer uses the single Volume License Key (VLK) concept. VA2 supports two methods for activation Multiple Activation Key (MAK) or Key Management Service (KMS).

After your initial installation of a Windows 2008 volume license edition you will need to activate your system.

Using KMS

When using the KMS system one or more KMS hosts activate the licenses for clients. A KMS client must then renew the activation regularly. The KMS server can be installed on Windows 2003 x86 and x64 servers, or Windows 2008 and Windows Vista have the required software built in.

Generally you should not install critical services like KMS on a Vista workstation, it is always better to use a server operating system.

KMS is controlled using a script based system. The script slmgr.vbs is located within the Windows\system32 folder. Some of the options for use are:

  • -ipk – install product key
  • -ato – Activate
  • -dli – Display license information
  • -xpr – expiration date for current license state
  • -skms – direct connection

Once you have finished building the Windows 2008 operating system, you should activate the server. However if it is just a short term test server do not activate. You do not want to be activating more than you have too.

slmgr.vbs -ipk <KMS key>

You cannot use the MAK key with this!

To activate the KMS key you must enter:

slmgr.vbs -skms <KMS Server name or IP>

The KMS Host will not start activating clients until the activation threshold has been met. In Windows 2008 the threshold is 5 systems.

Using MAK

MAK licenses are very similar to the old VLK method. With MAK licenses a key has a limited number of activations and connects directly to the Microsoft Activation server or can use a Volume Activation Management Proxy server.

Note that when using MAK’s, if you rebuild an OEM system you cannot use the OEM MAK again. You must use  a MAK you have purchased.

Summary

When working with Windows 2008 for the first time you might not have read about the VA2 system. The Microsoft error messages also do not help much.

If you have not installed your product key you might not be able to reach the internet. If you look in network connections you will see that your access is restricted to Local Only. You need and want Local and Internet. But you cannot just change a setting in a drop down box.

If you try and browse to the Internet you will receive an invalid IP error. If you try and activate you will get:

License Activation Scheduler (SLUINotify.dll) was not able to automatically activate. Error code: 0xC004F039

or

www.Microsoft.com is not set up to establish a connection on port “World Wide Web (HTTP)

After installing the correct KMS product key you should see your access change to Local and Internet.

Then you can do all the updates and driver installations. 

Hope this helps.