Vista Upgrade: Clean Install works. Upgrade error 0x80070241

> Vista Home Premium Upgrade 32bit
>
> Clean install works fine but because its an upgrade you can't
> activate it.
>
> Upgrade gives error message after copying files (it gets all the way
> through) "Windows cannot copy files required for this insallation.
> The files may be corrupt or missing. Make sure all files required for
> installation are available and restart the installation. Error code:
> 0x80070241"
>
>
> Methods of install:
>
> Straight off DVD
> ISO mounted in Alcohol
> ISO mounted in Daemon Tools
> Straight off Hard Drive
>
> So the only time i got Vista working was by doing a clean install
> (which of course you can't activate). This is extremely frustrating
> because it came with promotional items so the store won;t let me
> return it without surrendering my freebies. And without those
> freebies then I would never have bought this. So if anyone has a
> solution then please share it.