Activator is part of the reflection stuff built into .Net, and as such, is good for dynamically instantiating a class.
If you're using the factory pattern, Activator is your best friend.
I frequently use it for process-handler factories (don't confuse this with HTTP handlers, they're different). I build an abstract base class and some processes that use that base class, calling its abstract methods to get something done. Then I put the fully-qualified type name of the child classes into a database or other configuration, and instantiate from that.
Typically it goes something like this:
Type t = Type.GetType(childClassName);
FooBaseClass fbc = (FooBaseClass)Activator.CreateInstance(t);
That's the core of a configuration-driven factory.