I have a MSI package created using Visual Studio 2005 Web Setup Project on Windows 2003 Server.
When I tried to install it on Vista(home premium) with IIS7 installed, the setup failed with
Action ended: WEBCA_SetTARGETSITE. Return value 3.
Fortunately, when I've installed the optional "IIS 6 Management Compatibility" option within IIS7, the installation succeeded.