.net-based setup project fails at installation

I have create a setup project using Visual Studio 2008. When installing on a different machine, i get the following error:

The installer was interrupted before MyApplication could be installed. You need to restart the installer to try again.

the log file shows the following

MSI (s) (D8:20) [14:06:01:020]: Executing op: ComponentUnregister(ComponentId={533BAFA2-3A54-B4D7-B625-38EB0DB9BBB7},ProductKey={B10107EF-3C57-451E-9080-40FB1F4A8B95},BinaryType=0,)
MSI (s) (D8:20) [14:06:01:020]: Executing op: ComponentUnregister(ComponentId={B55DBDAF-0BCB-061A-9EA2-5AC798377ABA},ProductKey={B10107EF-3C57-451E-9080-40FB1F4A8B95},BinaryType=0,)
MSI (s) (D8:20) [14:06:01:020]: Executing op: End(Checksum=0,ProgressTotalHDWord=0,ProgressTotalLDWord=0)
MSI (s) (D8:20) [14:06:01:020]: Error in rollback skipped.  Return: 5
MSI (s) (D8:20) [14:06:01:030]: No System Restore sequence number for this installation.
MSI (s) (D8:20) [14:06:01:030]: Unlocking Server
MSI (s) (D8:20) [14:06:01:030]: PROPERTY CHANGE: Deleting UpdateStarted property. Its current value is '1'.
Action ended 14:06:01: INSTALL. Return value 3.
MSI (s) (D8:20) [14:06:01:060]: MainEngineThread is returning 1603
MSI (s) (D8:40) [14:06:01:060]: Destroying RemoteAPI object.
MSI (s) (D8:B8) [14:06:01:060]: Custom Action Manager thread ending.
MSI (c) (10:80) [14:06:01:130]: Back from server. Return value: 1603
MSI (c) (10:80) [14:06:01:140]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied.  Counter after decrement: -1
MSI (c) (10:80) [14:06:01:140]: PROPERTY CHANGE: Deleting SECONDSEQUENCE property. Its current value is '1'.
Action ended 14:06:01: ExecuteAction. Return value 3.
MSI (c) (10:80) [14:06:01:150]: Doing action: FatalErrorForm
Action start 14:06:01: FatalErrorForm.
DEBUG: Error 2826:  Control Line1 on dialog FatalErrorForm extends beyond the boundaries of the dialog to the right by 3 pixels
The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2826. The arguments are: FatalErrorForm, Line1, to the right
DEBUG: Error 2826:  Control Line2 on dialog FatalErrorForm extends beyond the boundaries of the dialog to the right by 3 pixels
The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2826. The arguments are: FatalErrorForm, Line2, to the right
DEBUG: Error 2826:  Control BannerBmp on dialog FatalErrorForm extends beyond the boundaries of the dialog to the right by 3 pixels
The installer has encountered an unexpected error installing this package. This may indicate a problem with this package. The error code is 2826. The arguments are: FatalErrorForm, BannerBmp, to the right
Action ended 14:06:04: FatalErrorForm. Return value 1.
Action ended 14:06:04: INSTALL. Return value 3.
MSI (c) (10:80) [14:06:04:475]: Destroying RemoteAPI object.
MSI (c) (10:F4) [14:06:04:485]: Custom Action Manager thread ending.
=== Logging stopped: 5/12/2009  14:06:04 ===
MSI (c) (10:80) [14:06:04:495]: Note: 1: 1708 
MSI (c) (10:80) [14:06:04:505]: Product: CMS -- Installation failed.

MSI (c) (10:80) [14:06:04:515]: Grabbed execution mutex.
MSI (c) (10:80) [14:06:04:525]: Cleaning up uninstalled install packages, if any exist
MSI (c) (10:80) [14:06:04:545]: MainEngineThread is returning 1603
=== Verbose logging stopped: 5/12/2009  14:06:04 ===

From stackoverflow

• Trying installing via the command line to get a log file. That should contain the error information.

  msiexec /i program_name /lv mylogfile.log

  You can use Wilogutl to make analyzing the log file easier.

• The Visual Studio setup project will create two files for you: an MSI file and a setup.exe bootstrapper. The latter installs any pre-requisites of your application and then launches the MSI file.

  When launching the setup.exe bootstrapper, a log file will be created in a subfolder of your %TMP% folder. Check for any error messages in this file.

  You can also start the MSI file directly and have it create a log file:

  msiexec /i mySetup.msi /l*vx log.txt
  

  Analyzing the log should help you to find the problem. If you need any help with the error message you could edit your question and add the error message.

• We had a similar problem and found a useful tip at the MSDN forums:

  The answer was to install the "IIS Management Compatibility" server role.