Hi,
Comicfan2000, I think you may have hit on what the problem is. I, too, have had this same problem on one of my systems. I have 4 systems on my home office network, 2 laptops and 2 desktops. All except my main desktop have the OS (Windows XP Pro SP2) installed on the C: drive. My main desktop has the OS installed on the H: drive. This is an older system so my C: drive contains an installation of Windows 98 Second Edition.
I have CPF installed on all 4 systems and 3 of the systems activated just fine. Want to guess which one is having activation problems...

Yup, the main desktop with the OS on H:. Having read your posts, this all now makes sense. It drove me nuts trying to figure out why the main system was the only one that failed activation. I hope that the programmers can find a fix for this because changing the system drive on my main system would require a massive redo of my system, which I really don't want to go through!
BTW, the 3 working systems have the latest release version of CPF where I just upgraded to the latest beta on my main system in the hopes of fixing this problem.
I guess I'll just have to wait for the programmers to fix it unless someone out there has any ideas for a workaround.
Thanks...
Clem