I have built a web setup project in VS2008 which installs my ASP.NET/Silverlight app into IIS. This works fine everywhere except on Windows Server 2008.
I get this error
Web Setup projects (vdproj) require IIS 6 Management Compatibility to be installed on IIS 7 in order for the installer to work correctly. You only need the Metabase and WMI Compatibility options checked.
Here's a good link on the topic which describes the problem and how you can update the installer to require these options to be check for installation to continue: http://devio.wordpress.com/2011/04/26/pitfalls-installing-web-setup-msi-on-iis-7/