Figured out the problem. It appears an old license key from the RC0 stuck in the license administrator. This cause VSTS to not prompt me for the new key.
Here are steps to fix. My instructions are for Windows Server 2008 x64bit.
1) Go to C:\Program Files (x86)\ArtOfTest Inc\WebAii Automation Design Canvas 1.0\Bin
2) Click on Microsoft.Licensing.LicAdmin.exe
3) From the License Administrator, highlight the current key and right click
4) Select Remove
5) From the License Administrator top menu, select File->Activation Wizard
6) If you received the trial license key, select "I want to activate over the internet" option
7) Enter the key supplied in the trial email.