I have an installation package (MSI based) which attempts to register a dll file for use as a Windows Explorer Bar (Internet Explorer Toolbar).
The c
The best practise solution (as you've alluded to) is to extract the registry entries from the component and write them to the registry using the msi.
Background
Regsvr32 requires admin rights and elevated privilege confirmation to register COM components under 64-bit Windows 7 but msiexec doesn't know to request elevated privileges for the custom action.
You can test this requirement by using "Open with..." to run C:\Windows\SysWOW64\regsvr32.exe on the component (which will fail). Whereas if you create a batch file for the registration and then "Run as Administrator" the component will register successfully.