Vista - Restore causes new Vista reinstall to require validation

Following problems with Windows Update and SP1, I reinstalled Vista Home
Premium and used a Digital Locker license to upgrade to Ultimate. After a
drive image backup of the new and validated install, Retrospect 7.5 was used
to restore the C drive in hopes of maintaining the base of installed
programs. On rebooting, windows validation was required, but the Home Premium
key was not accepted. The setup DVD will hang after setup is selected from
the menu.

Am I correct that the installation sequence: OEM Media Center 2005, Vista
Home Premium, and Vista Anytime Upgrade to Ultimate will be necessary? I was
hoping to access the drive image from the setup disk.

I have a Virtual PC drive with Win XP Pro on a second hard drive. After
Virtual PC 2007 is reinstalled, will it be possible to access the virtual
drive, or will the drive have to be recreated?

Arne