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I ran Process Monitor whilst attempting to activate the license and found that the account(s) used to run the Redgate backup services didn't have access to C:\Documents and Settings\All Users\Application Data\Red Gate\Licenses. I granted them full control on C:\Documents and Settings\All Users\Application Data\Red Gate and that solved the problem.
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I've just experienced the same problem, in my case deleting the following file then re-activating solved the problem:
C:\Documents and Settings\All Users\Application Data\Red Gate\Licenses\SQL Backup_v6_0.lic
Cheers
Chris
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Can anyone offer suggestions?
Regards,
Pete Cousins