Hi captainswoosh,
I'm probably over simplifying it, but the way it works is Windows takes that Hardware IDs from all the major hardware pieces that make up the computer. It then merges these numbers in a master hardware ID for the computer. If that master hardware ID changes too much, Windows requires re-activation. This is true for XP and Vista.
My understanding (and I may be incorrect, the inner working of Product Activation is not my strongest area of knowledge) is that these device drivers, bios updates and so on, may change the hardware ID of some of the hardware in your system. Usually this doesn't cause a required re-activation, but sometimes it may.
"Surely this has to be a major flaw in Vista."
While, I'll admit, I've seen this more often with Vista, I have also seen this scenario with XP and it is expected behavior.
"I paid good money for this product, this time I got re-activated, but if I have to call again, will I be so lucky? I don't want to be paying for a new licence every few months."
As long as your use of Windows maintains compliance with the End User Licensing Agreement (EULA), there is no point at which you call in for re-activation and you would be denied.
Thank you,
Darin Smith
WGA Forum Manager