Thanks to Steve I will use a different method to activate after a version upgrade and I also know if a server, standalone or clustered, has a license file.
For W2K3 look in "%ALLUSERSPROFILE%\\Application Data\\Red Gate\\Licenses\\" for a v9_0.lic file where v9 is the version. In my case it would be v7_0.lic. The ALLUSERSPROFILE turns out to be C:\\Documents and settings\\All Users
For W2K8 look in C:\\Program Data\\Red Gate\\Licenses for the v7_0.lic file. The Program data folder is hidden by default.
My new activation method will be by using the GUI Tools/Utilities/Product Activation and use this on both nodes.
English DBA living in CANADA