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Windows activation problem

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I have an XPS 8500 that came from the factory with Windows 8.  Soon after the purchase (around first of 2013) I made the rescue disks on 4 DVDs.  Recently the hard drive failed.  I gave the Dell salesman the service tag #  and ordered a new hard drive.  I Asked what I needed to re-install the OS.  I was told I needed a USB key ($39.99) and ordered one.  I was told this would get me up and running. 

I installed the new drive and inserted the USB key.  Windows installed and runs.  However, I cannot activate Windows.  Using Belarc advisor I was able to find my Windows key imbedded on the bios.  When I input that key the pop up tells me that the current edition is Windows 8 Pro and the current product key ends with QPBRC.  This differs from the product key embedded in the bios and I get an error code of 0xc004c003 'the activation server determined the specified product key has been blocked" and that I need to purchase a new key. 

I'm assuming that the problem is that I have a valid key for Windows 8 but not Windows 8 Pro.

I called Dell and was given a number to call Microsoft; alternatively, I was told that I'd need to go through Dell's tech support at a cost of around $250. 

I am at a loss at this point.  Any suggestions are welcome! 


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