Adding the following three lines in the MSIcode just prior to the Install Files commands solved the similar problem on WinXP.
CreateFolder $TARGETDIR$
Apply Install
Grant Complete Access to File System Object "$TARGETDIR$"
Install Files...
Install Files...
I then have to manually set the permissions on each file using the Security tab in order to be able to delete the files. I'm not too found of Vista so far.
Has anybody been through this already?
Thanks for the help.

