I have downloaded OS x10.8.1, but it won't install stating I need OS X 10.8...

Please Help

Is it possible you are trying to install using the 10.8.1 update? http://support.apple.com/kb/DL1571
You need to use your code by opening the Mac app store (looks like a blue circle with an A in it in the dock) and clicking on the Mountain Lion link. Or use my link.
Best of luck.

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