Ed Bott has an excellent breakdown, step-by-step, of the "Vista upgrade loophole" that you've probably heard a great deal about by now.
Most of it is typical echo-chamber* stuff, and most of the reports I've read so far have gotten the basic facts wrong. The Setup feature they're describing isn't a loophole at all. It's a perfectly legal workaround for an amazingly stupid technical restriction that Microsoft imposes on upgraders.
... The fact that you have to use a kludgey workaround to use the license you've purchased and are legally entitled to is Microsoft's fault.
(Ed likes to use the term "echo chamber" to describe the way a bad opinion or faulty observation can be picked up on by one member of the blogonetosphere and then just echoed unthinkingly by everyone else. It's the kind of thing I try to avoid whenever I can, even if sometimes the temptation to just say "Right!" is terribly strong.

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