Does this example for Registration Free Activation still work in VS2008 and Windows Vista/7? http://msdn.microsoft.com/en-us/library/ms973913.aspx
I haven't been able to get it to work. But I was able to use the Isolated COM setting to make an embedded manifest load an OCX file as I wanted. Registering with regsvr32 worked also, so something with the manifest isn't working. I believe the GUIDs are correct.