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You can install the upgrade version of Vista without having any previous Windows version at all. Vista will accept an unactivated Vista installation as a previous version. This can save you between $75 and $160 by buying an upgrade version instead of a full version of Vista.

How to perform a clean Vista install with an upgrade DVD

Step   1- Boot from the Vista installation CD.
Step   2- Select "Install Now" and DO NOT enter product key.
Step   3- Turn off option to "Automatically activate Windows when I'm online".
Step   4- Confirm that you truly want to install without entering a product key.
Step   5- Indicate which version you wish to install (choose the version you have the license for).
Step   6- Select Custom Install, DO NOT select upgrade
Step   7- After installation is complete and you are finally at the Vista Desktop navigate to the installation DVD and double click on setup.exe - DO NOT activate yet! (you can also eject the DVD and then reinsert it. This should start the installation program)
Step   8- Once the setup program runs select Install Now. Select "Do not get the latest updates for installation".
Step   9- Enter the product key now. (you are now doing an "upgrade installation" of Vista)
Step 10- Again, turn off "Automatically activate Windows when I'm online".
Step 11- Choose "Upgrade" and wait while the installer copies files and reboots.
Step 12- DO NOT boot from the DVD if asked. Just wait a few seconds and setup will continue.
Step 13- Several menus may appear that appear to be DOS windows. Don't touch. These will take care of themselves.
Step 14- A Thank You dialog box will appear. Click the "Start" button and wait for the login box.
Step 15- Reboot. At the Welcome Screen choose "Show more details".
Step 16- Click "Activate Windows now".
Step 17- That was easy! You've just completed a full install with an upgrade version.

Now doing this may present some moral delimas for some, and I can not decide for you whether or not to do this. I'm sure if you check the EULA for Vista that this is a violation. I take that back. I'm positive this is a violation.

But why is it possible? You can't tell me that thousands of programmers at Microsoft, and thousands of beta tester throughout the world missed this. I don't believe it. There has been talk that this may be an interesting "backdoor" marketing move by Microsoft. What do I mean by that?

Marketing?

If you look back to my February 1st newsletter you will notice the prices are the highest of any OS in history. I believe my price comment from that issue was, "Ouch!". I'm not alone on this one either. The internet is full of others commenting on Vista's price. Maybe (just guessing here) Microsoft knew there would be a big brouhaha about the price. Maybe this "work around" is included on purpose in hope that it would secretly spread though the internet allowing Microsoft to save face, feel warm and fuzzy inside, and still maintain a market price they think is fair? Actually this was done so purchaser of a Vista upgrade don't have to install an older operating system before installing Vista.

I don't know why. I can't explain it. I don't think Microsoft overlooked it. It boils down to you. If you feel comfortable using this work around, then by all means do. Hey! What a few hundred bucks between you and Microsoft?