Windows 2008 Activation - 0x8007232B – DNS name does not exist

When trying to activate a Windows 2008 standard server recently, I received error '0x8007232B - DNS name does not exist'.  The error description 'DNS name does not exist' can be misleading, the error occured because an invalid product key was entered.  If you didn't enter a product key during setup and then try to activate you will also receive this error.  Just correct the product key and activation will work.