I was having this problem too. After some experimenting, I found that Vista would come up with this message if the game files already existed in the folder you were trying to install to instead of prompting for overwriting like XP does. Try installing it into a different folder or re-naming the old folder that you were trying to install/re-install into.
For example I already had NWN2 installed in c:\Games\NWN2 when I had XP, but once I moved to Vista I had to re-install it. I tried install it back to c:\games\NWN2 and it gave me the invalid CD-Key error. I re-named the pre-existing NWN2 folder and then tried the installation again (pointing it to C:\games\NWN2) and it worked this time. I have tried it for several other games as well and this has been the problem every time.
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