Generally you need to perform online verification on our DRM contents for the 1st time you install and use on each individual content. After this, you may proceed for off line usage. If you've done the online verification and still encountered activation issue. Please check the followings: - 1) Make sure you're online with proxy server setting is being turned off. eg: Internet Options -> Connections -> LAN settings -> Proxy Server. 2) Do verify the content is stored under default template folder. For Win7/8: - C:\Users\Public\Documents\Reallusion\Template\CrazyTalk Animator 2 Template For WinXP: - C:\Documents and Settings\All Users\Documents\Reallusion\Template\CrazyTalk Animator 2 Template 3) At menu, please click "Help" -> "Content 1-Click Verification" on verification for all in once. More info, http://kb.reallusion.com/General/Article/50027.