I feel obligated to reply with what the actual solution was here.
When I was entering my license key, I was getting the error message I reported in my first post.
So I was exectuting the following code:
SET ANSI_WARNINGS OFF
What this did was force the serial key into the app but not actually activate Premium mode. Even though it said it did. So this is why the Active Scanning wasn't working.
After consulting via email with LanSweeper tech support, I was directed to this thread:
http://www.lansweeper.com/forum/yaf_postst1875_Registration-error--String-or-binary-data-would-be-truncated.aspx
Where I then was told to execute this code instead:
ALTER TABLE tsysconfig ALTER COLUMN Licensekey varchar(2000)
GO
This ACTUALLY validated my Premium purchase and allowed me to use Active Scanning the right way.
I was also informed that I might be using an outdated LanSweeper installer, but I'm pretty sure I'm on the current version. I think my license key is just too long for the table it's being entered into.
Don't make the mistake I did and force the key in. Expand the character limit in the table so you can activate properly.
Hope no one else runs into this problem.
LanSweeper service and the app have been great, and I'm already getting great scans from my network
Thanks LanSweeper team!!