I currently use some setup.exe packages with Cache MSI Locally option enabled, and default Cache Path ("[LocalAppDataFolder]Downloaded Installations"). As a user folder, this causes a problem if the user who installs the package is not the same as the user who uninstalls it from the ARP (as described in the Installshield knowledge base).
To continue using ARP to do this, I plan to move the Cache Path to "[CommonAppDataFolder]Package Cache". I saw that Microsoft was using this folder for some installations (such as Visual C++ packages). From what I know, all users can create subfolders here. In the most common scenarios, users cannot overwrite or remove existing files in this folder if they do not own them, but it is not an issue here (as MSI cache is not removed).
I suspect that the only condition to be aware of is if your installer offers the option to install per-user. My guess is that this is not the situation for you based on the idea of another user uninstalling. Otherwise there isn't anything I am aware of that says you cannot use the [CommonAppDataFolder]\CompanyName\AppName folder. I do not know the rules for the Package Cache folder.
I cache our install using the default folder. One user logs in and installs. A different user logs in and uninstalls. No issues. The only think I can think of has already been mentioned though... is your install set to be "All Users"?
