prostetnic
I think that I can see what has happened.
The reason why InstallShield has gone to such effort can probably be explained by Winzip.
The registry keys that are hurting you are due to the original installer that you repackaged making short-file-name file associations.
Winzip (and I think that it is unique for this) will complain if the associations are in long-file-name format, and use its own builtin selfrepair. your app probably will not.
Simple solution:
delete all the HKCR\SECLUDE.PSE.File entries and use the regular extension-ProgID tables instead.
Go to the components view and find the one called psemanagement.exe_COM. Once there, go to file types and you will see that most of the stuff you deleted in the last step are duplicated.
All you need to do is to add a new verb, "Open" and set its argument to -i %1
looeee