VS MSI installer project looking for ASP.NET when it's already installed

Question

I have this project which I am creating an installer for. It's hitting an error saying ASP.NET 2 isn't installed but it already is, any ideas? Here is the last bit of the error log:

    Action 15:07:20: WEBCA_ApplyWebFolderProperties. 
    Action 15:07:20: WEBCA_RollbackApplyWebFolderProperties. 
    Action 15:07:20: WEBCA_RegisterAspNet. 
    INFO   : [02/15/2012 15:07:20:505] [RegisterAspNet                          ]: Custom Action is starting...
    INFO   : [02/15/2012 15:07:20:505] [RegisterAspNet                          ]: CoInitializeEx - COM initialization Apartment Threaded...
    INFO   : [02/15/2012 15:07:20:505] [RegisterAspNet                          ]: MsiGetPropertyW - Determine size of property 'CustomActionData'
    INFO   : [02/15/2012 15:07:20:505] [RegisterAspNet                          ]: Allocating space...
    INFO   : [02/15/2012 15:07:20:521] [RegisterAspNet                          ]: MsiGetPropertyW - Getting Property 'CustomActionData'...
    INFO   : [02/15/2012 15:07:20:521] [RegisterAspNet                          ]: Property 'CustomActionData'  retrieved with value '2.0.50727.0"W3SVC/1/Root/MyProject"'.
    INFO   : [02/15/2012 15:07:20:521] [RegisterAspNet                          ]: Getting web folder property token...
    INFO   : [02/15/2012 15:07:20:521] [RegisterAspNet                          ]: Token is '2.0.50727.0'.
    INFO   : [02/15/2012 15:07:20:521] [RegisterAspNet                          ]: Getting web folder property token...
    INFO   : [02/15/2012 15:07:20:521] [RegisterAspNet                          ]: Token is 'W3SVC/1/Root/MyProject'.
    INFO   : [02/15/2012 15:07:20:521] [RegisterAspNet                          ]: Reading registry value Path from key 'HKLM\Software\Microsoft\ASP.NET\2.0.50727.0'...
    INFO   : [02/15/2012 15:07:20:521] [RegisterAspNet                          ]: RESULT   Path = 
    INFO   : [02/15/2012 15:07:20:521] [RegisterAspNet                          ]: Running process 'C:\WINDOWS\Microsoft.NET\Framework\v2.0.50727\aspnet_regiis.exe' with parameters ' -norestart -sn "W3SVC/1/Root/MyProject"' silently...
    INFO   : [02/15/2012 15:07:20:614] [RegisterAspNet                          ]: Process Call Result Code: '0'        Process Exit Code: '3'.
    ERROR  : [02/15/2012 15:07:20:614] [RegisterAspNet                          ]: The error indicates that this version of ASP.NET must first be registered on the machine.
    ERROR  : [02/15/2012 15:07:20:614] [RegisterAspNet                          ]: FAILED:  -2147024893
    ERROR  : [02/15/2012 15:07:20:614] [RegisterAspNet                          ]: Custom Action failed with code: '0'
    INFO   : [02/15/2012 15:07:20:614] [RegisterAspNet                          ]: Custom Action completed with return code: '3'
    Action ended 15:07:20: InstallExecute. Return value 3.
    Action 15:07:20: Rollback. Rolling back action:
    Rollback: WEBCA_RegisterAspNet
    Rollback: WEBCA_RollbackApplyWebFolderProperties
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: Custom Action is starting...
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: CoInitializeEx - COM initialization Apartment Threaded.
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: MsiGetPropertyW - Determine size of property 'CustomActionData'
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: Allocating space...
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: MsiGetPropertyW - Getting Property 'CustomActionData'...
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: Property 'CustomActionData'  retrieved with value '/LM/W3SVC/1/ROOT/MyProject/MyProject/bin"/LM/W3SVC/1/ROOT/MyProject/MyProject"/LM/W3SVC/1/ROOT/MyProject/MyProject/includes"/LM/W3SVC/1/ROOT/MyProject/MyProject/includes/jsTree"/LM/W3SVC/1/ROOT/MyProject/MyProject/includes/jsTree/themes"/LM/W3SVC/1/ROOT/MyProject/MyProject/includes/jsTree/themes/classic"/LM/W3SVC/1/ROOT/
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: Creating metabase object...
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: Getting web folder property token...
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: Token is '/LM/W3SVC/1/ROOT/MyProject/MyProject/bin'.
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: Opening key '/LM/W3SVC/1/ROOT/MyProject/MyProject/bin' to see if it can be deleted...
    ERROR  : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: FAILED:  -2147024893
    ERROR  : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: FAILED:  -2147024893
    ERROR  : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: FAILED:  -2147024893
    ERROR  : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: Custom Action failed with code: '3'
    ERROR  : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: Custom Action failed with code: '3'
    INFO   : [02/15/2012 15:07:20:708] [RollbackApplyWebFolderProperties        ]: Custom Action completed with return code: '3'
    Rollback: WEBCA_ApplyWebFolderProperties
    Rollback: Creating folders
    Rollback: Removing ODBC components
    Rollback: Updating component registration
    Action ended 15:07:22: INSTALL. Return value 3.
    Action ended 15:07:22: ExecuteAction. Return value 3.
    Action 15:07:22: FatalErrorForm. 
    Action start 15:07:22: FatalErrorForm.
    DEBUG: Error 2826:  Control Line1 on dialog FatalErrorForm extends beyond the boundaries of the dialog to the right by 4 pixels
    The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2826. The arguments are: FatalErrorForm, Line1, to the right
    DEBUG: Error 2826:  Control Line2 on dialog FatalErrorForm extends beyond the boundaries of the dialog to the right by 4 pixels
    The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2826. The arguments are: FatalErrorForm, Line2, to the right
    DEBUG: Error 2826:  Control BannerBmp on dialog FatalErrorForm extends beyond the boundaries of the dialog to the right by 4 pixels
    The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2826. The arguments are: FatalErrorForm, BannerBmp, to the right
    Action 15:07:22: FatalErrorForm. Dialog created
    Action ended 15:07:23: FatalErrorForm. Return value 1.
    Action ended 15:07:23: INSTALL. Return value 3.
    === Logging stopped: 2/15/2012  15:07:23 ===
    MSI (c) (34:70) [15:07:23:584]: Product: MyProject -- Installation failed.

    MSI (c) (34:70) [15:07:23:584]: Windows Installer installed the product. Product Name: MyProject. Product Version: 1.0.0. Product Language: 1033. Installation success or error status: 1603.

Answer 1

VDPROJ has been announced discountinued in the next release of Visual Studio. Microsoft has made InstallShield Limited Edition available for free to VS2010 users and publically reccomended it as the upgrade path. I wouldn't waste your time doing new development with this tool that has historically, well, sucked.

Also that custom action ( RegisterAspNet ) is closed source and there's nothing you could do to fix it anyways.