Unlike prior Windows products, All the editions of Windows Vista will apparently be sold on a single DVD, essentially meaning that every disc is potentially an Ultimate Edition. The license you have purchased with the media will unlock only the appropriate edition. This would explain why Microsoft moved the product key phase to the beginning.
This new concept comes with some very positive options. Firstly, the ability to perform an "Anytime Upgrade" simple means forking over the dough for a better license and getting immediate access to the expanded functionality, probably after a short upgrade process. With Windows XP, users requiring functionality that Professional offered but their Home edition didn't was not an uncommon occurrence.
If Microsoft does it right, they'll sell better licenses to people who already have them at a discounted rate. This will be kinder on consumer's pocket books and undoubtedly result in more revenues in the long run.
Of course, this will be a crackers’ delight. Let’s hope that it’s not too easy (hopefully impossible) to take advantage of, or else Microsoft will see it necessary to punish everyone for the indiscretion of a few.
Ars Technica reports.