When trying to activate a Windows Server 2008, Windows Vista and possibly some Windows 7 installs), you may get this error:
Windows Activation Key management services (KMS) host could not be located in domain name system (DNS), please have your system administrator verify that a kms is published correctly in dns. 0X8007232B
With Volume Licensing for products such as Windows 7, Windows Server 2008 and Windows Vista, you must use a new type of product activation called Volume Activation (VA).
To activate these operating systems with VA, you can use either a Multiple Activation Key (MAK) or Key Management Service (KMS), requiring a KMS key.
SOLUTION
It is stated on Microsoft.com to be an error related to trying to activate a Multiple Activation Key(MAK) while not having access to a Key Management Service (KMS).
If you have your volume license key (MAK) all you have to do is go to “Control Panel” -> “System” -> “Change Product key”, and insert the key. Even if you did it during installation! It should pass validation now.
MICROSOFT'S SOLUTION BELOW
Error message when you try to activate Windows Vista Enterprise, Windows Vista Business, Windows 7, or Windows Server 2008: "Code 0x8007232b"