Listen to a good friendly advice: throw out this proprietary trash, use excellent open-source WiX Toolset:
http://en.wikipedia.org/wiki/WiX[
^],
http://wixtoolset.org/[
^].
Among many other things, this product is the only legitimate one I know, from the MSBuild and Visual Studio point of view; it is 100% compatible with MSBuild project file standard (same one you use with C# and many other projects); and integration with Visual Studio is correct. Even the Setup project template which used to be supplied with Visual Studio wasn't legitimate in this aspect (and was nothing good).
—SA