I had one issue with Office XP activation, so I called Microsoft. They asked for my Activation key, I gave it to them, and they gave me a new key. They also emailed me the key.
Easy enough.
If this is what they're going to use, we might as well get used to it. Being a new feature, of course there are going to be problems at first. Ease up and wait a bit for them to sink some more money into Product Activation R&D.