Hi Mike,
I do not know why the new install is asking to be activated before you
can log in unless it has something to do with the broken copy of Vista
that is already installed on the original disk.
My advice would be to remove the original disk from the computer
leaving only the new disk installed, next you should then install Vista
on this disk, this time you should be given the option to automatically
activate this copy. (This is the default option) accept this option and
allow it to install, when finished you will have about two days before
the activation takes place which will give you time to copy your old
files.
To copy the old files I recommend that you purchase an External usb
enclosure, normally you can buy one without a disk and they are not to
expensive. (Also they are very handy for making backups)
Place the disk with the broken copy of vista into the usb enclosure and
attach to the computer this will now allow you to copy your files. When
finished and you are happy that you have saved everything you can then
format this disk (can also be done over usb) I suggest you use the quick
format option to save time.
If you want the original disk back in the computer, switch everything
off, swap the disks over, reinstall vista back onto the original disk
again leaving the option to activate automatically and copy your files
back. Finally format the usb disk when finished.
If you do all this in one day the first copy of Vista should never need
to be activated, if however it still asks for activation before you can
go into windows you should be given the option to do this by telephone,
which is a pain as you will have to do it twice if you want to use the
original disk again, but I dont see any reason for it not to work.
My tip when installing vista always make two partitions so that you can
keep your personal files on partition D\:
This will save all this trouble should you ever have to Reinstall Vista
in the future as you can simply reinstall on Partition C\: Remembering
not to format D\: during the install which will leave your personal file
intact.
Finaly remember you are only allowed one copy of Vista per activated
key and that all other copys on other drives must be destroyed.
By formatting not with a hammer!!
I hope this helps
Pooch