Upgrades of Vista must be started from inside an existing install of Windows. The workaround some people found on a new disk is to install Vista once, but don't enter a product key on the installer. That then lets you format the drive, and put down a clean image. Once installed, you start the installer inside Vista, choose custom, and provide it the key.

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I feel compelled to get Vista and will probably get Ultimate soon.

I do have to ask. Why? Yes, it's new and shiny. But overall when even our resident MS employee isn't going to upgrade to Vista at home, it's a sign it might not be worth it yet.