Well it looks like I was right. I skipped the key input and continued on to set up the computer. I tried to activate the code again and I got a real error message that said the code I had was only for upgrading and not for clean installs. So I ran the disc and did an upgrade and it worked perfect. It accepted the key and I got this computer all ready to go.
I want to thank you for of your help, it is greatly appreciated. I will be sure to come back here if I am ever in need of help and I will also be recommending this site to everyone else I know.