The VB6 package and deployment tool is really dated. It doesn't play well with some of the new security features.
It's probably trying to install old copies of the VB6 runtimes and then Windows is restoring its own copies.
It's been a while, but can you remove the VB6 runtime files from the files to deploy in the Package and Deployment Wizard? If so, do so. As long as the computer being installed on has the latest service packs it will already have the VB6 runtimes on it.
If that doesn't solve your problem then check what other system files your deployment project has in it. In most cases you won't need to deploy any system files as modern, patched systems should have them all. There are a few activeX controls that may not be on modern systems, but those shouldn't cause these endless restart problems.
Alternatively, try another install technology. You could create a setup project in modern versions of Visual Studio. Alternatively there are some very good open-source and commercial products.
I've used this one quite successfully in the past:
http://nsis.sourceforge.net/Main_Page