Enter your Activation key, accept the license terms and hit 'next.'  

Choose the 'upgrade' option and wait while the Vista installer checks your 
system's software and hardware for compatibility with Windows Vista.


             
  Assuming that your computer meets the minimum hardware requirements, any problems here will be 
software  based. Listed first in the compatibility report results will be any programs that 
must be removed before Vista can be  installed. Daemon 
tools, the popular CD image player, is one example.
Listed second are any programs and drivers that will not interfere with the 
upgrade but may not work after it. Note these down now, as you will want to 
check and possibly replace each of them after the upgrade is done. PCSTATS 
advises you to quit the install process now and go online to download 
Vista-compatible versions of the offending software. Store them along with the 
other Vista drivers you already downloaded.