unfortunately there seems to be a problem with Archive control when you set ArchivePageUrl. We will see how are we going to handle this problem tomorrow, but since you are in such a hurry I've created two custom controls that inherit Archive controls and fix this problem temporarily.
You can download the control from here :http://blogs.sitefinity.com/Ivan/Downloads/ArchiveControls.zip
For News use the GCArchive while for blogs you should use BlogsArchive control. I've zipped the projects so you just need to build them and upload controls on your page edit (use "Upload control" and then chose .dll).
Once you are done with that go to web.config and set the section and name for these controls as you wish.
Archive controls have CustomDataSource property so you can implement your logic here for active state... CustomDataSource should be set by any of the manager.GetContent methods.
I am really sorry for the problems this has caused you and hope this solution does not come too late.
the Archive control in Generic Content group of controls should be used for anything except blogs. The one in blogs section is same as that one except that it lets you set the selected blogs property.
the Telerik team