HERE’S THE FIX…
Download Internet Explorer 8 and Hotfix KB946501, burn them to disc
Hotfix KB946501 http://support.microsoft.com/default.aspx/kb/946501
Internet Explorer 8 http://www.microsoft.com/windows/internet-explorer/default.aspx
Start your PC and repeatedly hit F8 to get the safe mode menu.
Choose safe mode with command prompt only (if you are unable to enter safe mode otherwise)
When the command prompt appears type “explorer”
Should load the Windows GUI behind the cmd window
Install the KB946501 hotfix from your disc (may not need if you’re not multicore)
Reboot normally in to Windows, you should be able to activate as usual.
Apparently the activation Window is dependant upon IE.
Hope this works, let me know.