I wish to seek suggestions on th following:
While creating a product key if one wish to use the no. of machines the key is made for , just like in the case of Microsoft Volume Licensing , how can one do that so that easily verfiable inside the dll which is made to verfiy the key entered in the installer and say if a key is made for say 100 machines how does one validate it offline that the product key does not work on 101th computer.
Thanks,
It's called 'floating licenses'. You can have a 'license server' that reserves N seats for specific local area network. When an instance of application is launched it connects to the 'license server' and queries a permission to run. If there are already N connections, N+1 instance start up will be denied.
Check the http://activation-cloud.com it might be useful for you.