I am not giving up on this yet but what I have learned now is troubling.
Quick summary of my setup and my results, I have a homemade computer, and a 8.0 OEM/system builder disc and key bought in 2012.
I managed to create a 8.1 recovery USB stick that works, that`s all.
We know that updating a 8.0 installation to 8.1 through the store renders your recovery partition useless.
I was also unable to reset/refresh 8.1 using my 8.0 OEM disc, naturally, but couldn`t hurt to try.
Windows can make a recovery media for you, I did that with a USB key, and this recovery media turns out to be useless, you can not refresh/reset because you are still missing files.
I thought that in order to get a usable 8.1 recovery partition I would need to do a clean instal of 8.1.
Doing a clean instal of 8.1 is impossible without a 8.1 retail disc and no ISO`s have been released so that means you`re stuck.
That is unacceptable so next I started cheating.
I followed instructions from this page to get a 8.1 ISO file, this file is downloaded by the installer provided by Microsoft so I see nothing wrong or dangerous about this.
http://www.reddit.com/r/windows8/comments/1oqs4c/how_to_download_windows_81_iso_with_80_retail_key/
I actually didn`t use the ISO I made, the installer also allows you to create a 8.1 bootable USB stick which I prefer to burning a disc.
I`m using a UEFI motherboard that makes booting from USB very easy but that should not be a requirement for this.
Next I booted from the USB key and started the installer, the installer however did not accept my 8.0 OEM key, so stuck again.
I read elsewhere that 8.1 can NOT be installed using a 8.0 key, but you can ACTIVATE it using a 8.0 key.
A normal 8.0 or 8.1 does not allow you to instal windows without entering a key, but I found a fix for that with some more searching.
This page explains how to create a single ei.cfg file that needs to be put in the sources folder on your install ISO/USB stick, this disables the key requirement during the installation.
http://www.jmedved.com/2013/09/installing-windows-8-1-or-8-without-a-product-key/
Using a USB stick makes this easy.
With the file on the stick I booted from it once again, this time I was indeed able to start a clean 8.1 installation without having to enter a key.
During the installation I REMOVED EVERY PARTITION, and asked Windows to instal onto the UNpartitioned space.
As far as I know doing this makes sure the installer creates the partitions just the way it likes it.
The installation ran until I was promted to remove the USB stick, I did and it rebooted.
The OOBE runs and asks for a key, this wizard accepted my 8.0 OEM key and the instal finished.
This leaves me with a clean 8.1 install, Windows says it is activated, and in disk management I see it has created a new 300MB recovery partition.
This recovery partition DOES NOT WORK ! when I start refresh/reset it says I`m still missing files.
I can however finally use this feature with the USB stick I made, but that is not the desired setup, I want a functioning recovery partition.
I really hope this issue does not exist with 8.1 retail discs doing a clean install.
Dear Microsoft, I am cheating because the way you are handling the keys is unreasonable.
A 8.0 OEM key holder has the right to install 8.1 for free, so it is unreasonable for the 8.1 installer to deny me the right to a clean installation of 8.1 with my key.