Hey Michael,
We'd like to disable the "Manual Activation" bit of TurboActivate (so no "Manually activate offiline" option).
No, there currently isn't a way to remove that option from the TurboActivate Wizard. You can, of course, build your own interface without the offline activation option just by using the TurboActivate API.
This is because we need the application to be able to "call home" and check license; so the user needs to be able to connect online; so manual (offline) isn't really an option.
Well, both options "call home" (you can read more about how "activation" (online & offline) works here). If you're talking about IsGenuineEx() -- the function that periodically verifies the activation is still genuine -- then you can configure that to check online regardless of whether the initial activation was online or not.