I've got both VS.NET 2003 and VS.NET 2005 as well as SQL Server 2000 and SQL
Server 2005 installed on my dev machine. When I attempt to build a VS.NET
2003 setup project, a dialog box pops up attempting to configure Microsoft

[quoted text, click to view]

This is a real shot in the dark , given the symptoms you describe, but worth
a try. I'm quoting a response post from Kirt White to a vaguely similar
problem:

<quote>
Seems that Windows is running what is defined in App Paths for "setup.exe"
Judging by the error that you are getting, Windows is running
<system32>\setup.exe instead of the setup.exe from the CD.

Open regedit and navigate to
HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\App
Paths\Setup.exe

Double click on the default value and clear the value data. It should now
be blank. This should clear up your problem and allow you to install VS.

Kirt White
Windows Installer Development
Visual Studio/.NET Setup and Deployment
Microsoft Corporation
This posting is provided "AS IS" with no warranties and confers no rights.
</quote>