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I use Visual Studio 2008 Installer Project to create a MSI Installer. With the software I deploy and install a Service. I added the primary output of the service project to the custom actions (Install, Commit, Rollback, Uninstall) of the Installer. First I had problems updating the Software (Error 1001. The Service already exists).

Then I got to know about the issues with the updating process in VS2008 Installer. I resolved them by adding "Not (Installed OR PREVIOUSVERSIONSINSTALLED)" as a Condition to the Install Custom Action. That way my updating (to the same directory) works. Repair with the same Installer works, too.

There is one problem left: I install the previous version to the location "Directory A". Then comes the update and I decide to install (that is, update) the Software to location "Directory B". Here I get the following error: "Error 1001. Could not find file c:....\Directory B\Project.Service.installstate" and the update process is terminated.

I made many changes to the installer. From some point (I do not know when), after the installation there is this "Project.Installer.installstate"-file in the directory where the Software is being installed. At the point during the update, when the error occurs, there is still the installstate-file in "Directory A", but there is none in the "Directory B".

How can I fix that problem?