Hi, I have found out that when you try to isolate a package that is compressed into an msi, you get that message. And to get around this, I had to build an uncompressed msi from the project (ism). Note that it won't work if you uncompress your msi with /a (administrative install) and try to isolate it from there.
Of course, this may not be very helpful if one needs a fully compressed isolated msi.
I also tried to turn off the component creation but it won't let me through. I'm using AdminStudio 5.5.
Tonny.