Web Application Setup is not honouring TARGETDIR

Question

I need a help on packaging my web application. I have made a setup project, while deploying I am using following command.

msiexec /i ABCSetup.msi /log D:\logfiles\ABC\ABC_Setuplog.txt TARGETAPPPOOL=XYZ TARGETSITE=/LM/W3SVC/7680 TARGETDIR=D:\WWW\ABC TARGETVDIR=ABC

1. TARGETSITE is identified, creating a virtual directory under the site 7680 and setting TARGETAPPPOOL to XYZ.

2. Facing problem in placing or copying files to the given TARGETDIR. Instead of copying the web Application folder contents to D:\WWW\ABC, files are copied under D:\www\XYZ\ABC (D:\www\XYZ is the Target Site path)

Can any one help me to resolve this issue. I need to place the contents of web application folder under given Targetdir.