Starkers didn't send me a disk. He bought Windows 8 for me and I received a email from Microsoft with instructions to download and burn the Windows image. The key was included in the email. It is not a OEM key.

Thanks everyone for the support. I now remember why I haven't upgraded from Windows 7. Windows 8 does not work with my wireless USB network adapter. And my computer sits too far away to run a LAN cable.

Back to the drawing board.

Just to clarify things here, I enabled kona to purchase Win 8 by forwarding him the funds via Paypal to download the $40 discounted version from Microsoft... hence his key would be legitimate and there should be no issue with contacting MS support to have it re-activated over the phone. 

The reason I did it this way rather than purchase a copy here in Oz and send it to him was/is because of the regional differences, and that he may have had issues activating a product key that was assigned to a different region.  Well that's what the lady at MS told me, so I opted for the 'download a copy in his own region' method to avoid any potential installation/activation hiccups.

As to why this key is not activating, I'm not sure, but it is not an OEM copy so that should not be an issue. 

EDIT.  I was a tad slow... kona pretty much explained it.

@kona   A wireless adapter these days is relatively cheap... like under 10 bucks for one of those USB types, and that would allow you to run Win 8 with internet connectivity.  Alternatively, there's the idea of running a LAN extension lead from the modem to your PC.  Again, this would cost you under 10 bucks (I recently purchased a 25 metre LAN for $8.95) and you could tuck it away against the wall, etc, to save anyone tripping on it.

Where there's a will there's a way, kona, so up and at 'em... install Win 8; get connected to the net using one of the above options; ring MS support to get it activated over the phone.  And there is nothing to fear when ringing MS, okay.... just follow the prompts and Win 8 should be activated if you've provided the right responses.  If you are required to speak with a representative, just answer that it is for one machine/the same machine and that there have been some harware changes.  You should then be given an activation code to type in and viola.

Kona, have you sold, or given away, or even parted out a system that had your Windows 8 installed on it?

If so, and it is being used on that machine, or was being used on it before you parted it out, then you would see a problem with using the key. Calling Microsux would fix the problem.

Sorry, I can't do any of that. I don't have any source of income. When I do get money in, and that is quite rare, it has to go to bills that pile up. Buying computer parts is a on the bottom of the list. I was only able to upgrade to these new computer parts because they were left over from replacing a friend's computer with new parts. I can't run a LAN cable. It's complicated to explain. Besides the fact that I can't afford it, I just can't do that.

Nope. Never. In fact, this was the first time I tried to activate it.

Well I have Windows 8 running in Virtualbox. It would take some getting used to. Haven't tried to activate it. For now, this satisfies my Windows 8 urges. I get way more work done with 7 so I'm sticking to 7. And the fact I can't afford a new network adapter. Thanks.