Crystal Reports 11 Merge Module Issue

[LFP]

My installation includes the Crystal Reports 11 Merge Modules(CrystalReports11_RDC_DesignTime.msm, License.msm, Reportengine.msm, and Runtime.msm) The only change I made to the above was to edit License.msm with ORCA to include my Crystal license key in the PIDKEY column of the Property table.

When the install runs, I get 2 errors during the Crystal install portion:
1. Source file not found: S:Setups\\INSTALL~1\\Release\\UNCOMP~1\\Program Files\\Business Objects\\3.0\\keycodee.dll. Please verify that the file exists and that you can access it.

2. Module C:\\Program Files\\Common Files\\Business Obejects\\3.0\\Bin\\keycode.dll failed to register. HRESULT - 2147024770. Contact your support personnel.

If I click Ignore for both these errors my application and Crystal install and appear to both work fine.

Here's where it gets interesting. I am also working towards creating patches. In the Build settings in IA, I turned on the "Always Cache Setup Sources" option. Now, when my install runs, it generates errors like:
Error reading from file: C:|DOCUME~1\\ALLUSE~1|APPLIC~1\\{FD7B2~1\\Program Files\\Common Files\\Business Objects\\3.0\\bin\\vle_res_en.dll. Verify That the file exists and that you can access it.

I get a similar error for about 60-70 more Crystal dll's. I clicked ignore for a while and then finally gave up.

Regards,
LFP

UPDATE: I created a new test install project that simply installs Crystal Reports. Crystal installs fine with setup caching turned off, but give the same errors as above with cahcing turned on. Clearly this is a problem with my install, but I have no idea where to go from here.

UPDATE: PARTIALLY RESOLVED: As a last ditch effort to fix this, I remove the Crystal Merge Modules from my project and readded them. This did nothing. I then removed the merge modules, rebuilt the project, re-added the merge modules, and finally rebuilt the project again. The issue I was having with 'keycode.dll' is now gone. The issue when setup sources are cached persists.
LFP

[MichaelNesmith]

Does this issue reproduce when setup caching is enabled with the web build type?

[LFP]

Michael:

The web based build works. I also tried a single file build and it does not work.

Regards,
LFP

[MichaelNesmith]

Please email support with the smallest merge module that reproduces this issue, and we'll escalate to R&D for you for a bugfix.

[LFP]

Michael:

Email sent with attached merge module(CrystalReports11_RDC_Designtime.msm).

Regards,
LFP

[MichaelNesmith]

R&D has provided a hotfix - please regenerate and reinstall your license and test, letting us know of the outcome.

[LFP]

Michael:

I retested with the latest version, and I get the same errors.
Using 9.03 Service Pack 1 (build Moya).


Regards,
LFP

[MichaelNesmith]

It seems this is a more complex issue than would appear - I'm afraid we'll have to await for more updates from R&D.