I am using Admin Studio 3.5 ValuPak 2 and when I try to convert an inc file to an msi it fails with a COM error #0x8007065b. This just hapens with 1 app (IXOS).
This will be fixed in the coming release. This is due to INI entries in the repackaged INC project. For a workaround you can get rid of the INI entries before the conversion. Build the ISM and then add the INI entries back using Developer.