Overview
This is a synopsis of information provided on the Microsoft Volume Acitvation Site, but I’ve filtered it for what I think is usefull.
Microsoft Volume Activation (VA) 2.0 is designed to allow volume licensing customers to automate the activation process so that there is little impact on end users. VA 2.0 provides volume customers with two models for activating Windows Vista and Windows Server 2008. The KMS model is designed to activate systems by connecting to a locally managed network-based service. The MAK model has systems connect to Microsoft for activation either individually or by using a proxy.
Most people will use both activation models because latops are not around to activavate to a local KMS service.
Key Management Service (KMS)
KMS requires a minimum number of physical computers in a network environment. You must have at least five (5) physical computers to activate Windows Server 2008 and at least twenty-five (25) physical computers to activate Windows 7 clients. These minimums, called activation thresholds, are set so that they are easily met by enterprise customers. For more information about activation thresholds, see the Volume Activation 2.0 Planning Guide.
Note: These thresholds at least pose a problem to people who are first implementing KMS. None of your windows 7 clients are activated until the 25 limit is reached. Thankfully in our environment there are a lot of windows 2008 servers so that helps with our threshold, but this is still something that needs to be planned for….
By default, volume editions of Window 7 and Windows Server 2008 connect to a system that hosts the KMS service to request activation. No action is required of the end user
MAK is used for a one-time activation with Microsoft’s hosted activation services. There are two ways to activate computers using MAK. The first method is MAK Independent activation, which requires that each computer independently connect and activate with Microsoft, either over the Internet or by telephone. The second method is MAK Proxy activation. With this method, a computer acting as a MAK proxy gathers activation information from multiple computers on the network and then sends a centralized activation request on their behalf. MAK Proxy Activation is configured using the Volume Activation Management Tool (VAMT).
Note: For us MAK was not an option because we are under a corporate agreement with Microsoft.
What If Systems Are Not Activated?
If activation does not occur immediately after the operating system is installed, Windows 7 and Windows Server 2008 still provide the full functionality of the operating system for a limited amount of time, or grace period. The length of a grace period varies from thirty days, for Windows 7 to sixty days, for Windows Server 2008. After the grace period expires, the initial release of Windows Vista transitions to reduced functionality mode (RFM), but Windows Vista Service Pack 1 (SP1) and Windows Server 2008, after the initial grace period expires, do not go into RFM. If not activated, these products continue to remind the user to activate through notifications.
Grace Period
During the initial grace period, there are periodic notifications that the system needs activation. Systems in this grace period have a set period of time to activate the operating system. Once a day, during the logon process, a notification bubble reminds the user to activate the operating system. For both 60-day and 30-day grace periods, this behavior continues until there are three days left in the grace period. For the first two of the final three days of the grace period, the notification bubble appears every four hours. During the final day of the grace period the notification bubble appears every hour, on the hour.
After the initial grace period expires or activation fails, Windows 7 and Windows Server 2008 continue to notify the user that the operating system needs activation. (Very annoying but everything still works)
So to setup the (KMS) service on a windows 2003 machine…..
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