Yes, I've done this four times now, and it's the best way to go if you want a clean install.
Save all your important stuff (photos, videos, music, documents, Outlook files, etc) and then reinstall them once you've got your clean Vista install. Then start restoring programs, printer drivers, other drivers, utilities, ad nauseum ......... until, three full days of tedious work later, you're back to where you were before, only cleaner/faster (hopefully).
There must be a better way, though, to do a clean, complete reinstall. I'm pretty organized but this still takes me MANY, MANY hours to do. The photos, music, etc. are simple enough, but the drivers, the programs, and all the "necessary" junk you want back, well that's much more time-consuming: I'm running around gathering up all my sources (DVDs, saved backups, downloading files, etc) and reinstalling for DAYS !!
Does anyone have an organized, faster system of accomplishing this? I'd sure be grateful.
Thanks.
Rick, the mexicorider
p.s. BTW, when following this "Clean Vista Install w/ Upgrade Disc" procedure you posted, you really don't need to reinstall (the second time) from within Windows: you can just boot from the upgrade disc and call it a clean install and it will work fine, and allow you to activate afterwards.