A recent installation of Microsoft Windows Server 2008 went rather smoothly until the requirement to activate in order to complete the installation. The activation window presented itself with a nasty error, “Volume activation has failed” Description: DNS Server Failure and to contact the system administrator with error code 0x8007232A. After some research the resolution was found in a forum that was addressing the exact same issue with the activation mechanism of Microsoft Windows Vista.

Resolution
Regenerate the Product ID in the activation window with the license code, and then activate Windows.

When complete the result should be activated.