I sorted our schools KMS out yesterday for windows 7 and office2010, it is a bit confusing in places and the documentation isnt brilliantly explanative for the process.
Its worth you having a look at this technet post, the bit on the KMS server that you are referring to here I think is the area that can cause confusion according to Microsoft.
How to troubleshoot the Key Management Service (KMS)
You can use VAMT 2 to do the KMS authorisation once you have the workstations selected.
Its also worth adding here though not related directly to what your going through, that you need to also enable the KMS on the servers firewall and check that setting, I didn't and spent a while scratching my head, wondering why everything was in place but none of the clients were able to authenticate, before the eureka moment.
Hope this helps anyway
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