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Clip Source: windowssecrets.com
Get Vista upgrade, never pay full price
By Brian Livingston

Many people are upset by the fact that the economical, "upgrade" version of Vista won't accept a Windows XP or Windows 2000 CD-ROM as proof of ownership. Vista Upgrade is said to install only to a hard disk that already has XP or 2000 on it.

But I've tested a method that allows you to clean-install the Vista upgrade version on any hard drive, with no prior XP or W2K installation — or even a CD — required.
The secret is that the setup program in Vista's upgrade version will accept an installed copy of XP, W2K, or an unactivated copy of Vista itself as evidence of a previous installation.
This enables you to "clean install" an upgrade version of Vista to any formatted or unformatted hard drive, which is usually the preferred method when installing any new operating system. You must, in essence, install Vista twice to take advantage of this trick. But Vista installs much faster than XP, so it's quicker than installing XP followed by Vista to get the upgrade price.
Why does Vista's secret setup exist?
It's reasonable for us to ask ourselves whether buying an upgrade version of Vista, and then installing it to an empty hard disk that contains no previous version of Windows, is ethical.
I believe it is. Microsoft itself created the upgrade process. The company designed Vista to support upgrading it over a previously installed copy of XP, W2K Pro, or Vista itself. This isn't a black-hat hacker exploit. It's something that's been deliberately programmed into the approved setup routine.