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Windows Activation Error - Vista

Recieving an error when attempting to Activate Windows VIsta using a license Server, error states as follows:

Code:
 0xC004F041

Description:
   The software licensing service determined that the key management service (KMS) is not activated. KMS needs to be activated. Please contact system administrator.

I am working with the sys admin, and he can see the computer from the domain controller that he has the service installed on but it's not activating. Any advice or directions to take would be greatly appreciated. We would like to begin our Vista testing but need to get this working first.

Thanks so much
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LeeTutor
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This diagram shows how it's supposed to work:

http://www.directionsonmicrosoft.com/sample/DOMIS/update/2006/12dec/1206pactb_illo2.htm

Here's an article on all the "ins and outs":

http://technet.microsoft.com/en-us/windowsvista/bb335288.aspx
Windows Vista Volume Activation 2.0 Step-By-Step Guide

And a guide to all the various errors possible:

http://technet.microsoft.com/en-us/windowsvista/bb286760.aspx
Volume Activation 2.0 Troubleshooting Guide by Error Code
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We have looked over all of this material with no avail. I am not sure if he has tried calling to Activate the KMS host. I will check with him and check back. If anyone else has any ideas they would be greatly appreciated.
Has anyone seen this issue?
Here is something else that might be useful, this is from the event log on the server that is being used for Key Management:
An activation request has been processed.
Info:
0xC004F041,25,CORPWJCOCHRAN07.na.lzb.hq,71a10d54-a538-4c83-bef1-f15e41fdfbd5,2007/7/25 10:21,0,2,33826,4f3d1606-3fea-4c01-be3c-8d671c401e3b

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

it states that the server processed the activation. So where is it going because the computer thinks it is not activated :-(

Not good!

Thanks,
We discovered that the server that was used for the activations had never actually activated. We had to activate over the phone and now we are good to go.
Thanks for the suggestions!
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Computer101
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