Re: "Are you saying that if I format the disk and boot from the Vista
CD, that the Vista Upgrade disk should be able to search hidden
partitions for a qualifying version?"
No, but you can still do a clean install.
On ALL versions of Windows (going back to at least 98, perhaps 95), an
update CD can do a clean install. When doing a clean install, of
course, there is no earlier version of Windows on the hard drive. What
people don't understand is that an update does not use any of the code
from the "old" operating system*, and never did (in any version of
Windows). So a previous version isn't needed (or used even if it is
present) for TECHNICAL reasons. It's only required -- and has only
ever been required -- for "license" reasons, to verify that you are
permitted to use an "upgrade" copy (which costs much less than a full
version).
So, when an upgrade version doesn't find a previous edition of Windows
to validate use of the update copy, it will stop and ask you to insert
the actual product CD from a qualifying previous version of Windows into
the CD drive, and it won't proceed until (and unless) you insert such a
qualifying CD. However, while it needs to "look at" the CD to insure
that you have it, it does not actually use any files off of that CD for
the installation. It's purely a license verification. The actual
installation is performed entirely from the new version of Windows (from
the "update" copy, which, in this case, is doing a full-product like
clean install).
*[Note, while an upgrade installation does not use any actual code files
from the old version of Windows (if an old version is present), it DOES
use the old version's registry and non-Microsoft drivers and installed
software in an attempt to have the new installation of the later version
of Windows retain all installed hardware drivers and applications
software. This attempt is not always 100% successful; the drivers and
applications software that worked with the old version of Windows won't
necessarily work with the new version (e.g. XP drivers won't necessarily
work with Vista), which is why a "clean install" is more reliable than
an upgrade installation.]