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answers:

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I've created an installation package using Installaware and generated an EXE and a MSI. The EXE is 3.1MB and the MSI is only 265K. Why is there such a big difference in size?

A: 

The EXE probably contains setup routines that are otherwise performed by msiexec, which just executes whatever installation script is contained in the MSI.

Jim Brissom
+1  A: 

The difference is : MSI package contains your files + install script, and the actual installation is run by the Microsoft Installer which is a part of Windows, and it takes care of displaying Windows, logging messages etc. On the other hand, your EXE installer is holding files + actual program logic to run the install itself, being responsible for pretty much everything, hence the difference.

Jas
One thing to note is that there are many versions of msiexec, and your .MSI file will require a certain version of the Microsoft Installer. That said, users who regularly update their Windows will always have the latest and greatest msiexec installed.
EboMike

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