Dear Customer,
Thanks for your post.
You can select the first option to activate Windows via Internet, and the wizard should prompt you that there is unauthorized product key and you input a valid new key.
In addition, you may refer to the following Microsoft Web sites to change the Volume Licensing product key:
How to change the Volume Licensing product key on a Windows XP-based or a Windows Server 2003-based computer
http://support.microsoft.com/kb/918342
Description of Microsoft Product Activation
http://support.microsoft.com/kb/302806
virtual Key is for vpc/virtual key.
If anything is unclear, please let me know. I look forward to your reply.
Best regards,
Tom Zhang, MCSE 2003