Hi RedShade....
I was in your shoes earlier this week!!!!
The good news is that I am once again a happy camper. Let me tell you what I know:
-- Agreed, the documentation/explantations etc... for activation etc.. are probably somewhere on some website (Stardock??) but a poor job on explaining this stuff !!!!
-- In the EULA that you "agree to" when installing the software, it DOES mention in the "fine print" that you will have to activate via the internet.
-- The activation process IS automated, and you get a timely response IF your information is all correct in the email. (My first activation attempt took over a day and required human intervention because I had sent wrong info. My second activation attempt took about 5 minutes to get back the file I needed to activate the game)
-- My biggest fear was that I would have to go through this process EVERY upgrade!!! According to the activation reply I got, "you WILL NOT need to activate this game again, as long as you continue to use it on the same computer...." (or something like that)
So in summary.....just grit your teeth and persevere for another day while you get your activation reply. The game is definitely worth the hassle, and according to Stardock, once activated doesn't need it again!!!
good luck!