I have a Visual Studio 2010 Deployment Project with the following settings:
DetectNewerInstalledVersion = True
InstallAllUsers = True
RemovePreviousVersions
The setup project created with Visual Studio (2008 and 2010) will only replace files if the version number has been incremented. The obvious solution would be to just increment all version numbers; but as you said this is not feasible for you.
The behavior of the .msi file is basically determined by the moment when the RemoveExistingProducts action is executed. Installers created with VS 2008 schedule this action after the new product has been installed. Modified assemblies whose version has not been incremented therefore don't get replaced. Some more details about the update behavior are described in this thread:
RemovePreviousVersions=True but previous version is not removed from the target machine
To change the behavior, you can patch the created .msi file so that the RemoveExistingProducts action is executed before the new product gets installed (this actually has been the behavior if you created the setup with Visual Studio 2005). Patching can e.g. be done using a small VBScript that runs as a post-built step:
Dim objInstaller
Dim objDatabase
Dim objView
Dim objResult
Dim strPathMsi
If WScript.Arguments.Count <> 1 Then
WScript.Echo "Usage: cscript fixRemovePreviousVersions.vbs "
WScript.Quit -1
End If
strPathMsi = WScript.Arguments(0)
Set objInstaller = CreateObject("WindowsInstaller.Installer")
Set objDatabase = objInstaller.OpenDatabase(strPathMsi, 1)
Set objView = objDatabase.OpenView("UPDATE InstallExecuteSequence SET Sequence=1450 WHERE Action='RemoveExistingProducts'")
WScript.Echo "Patching install sequence: UPDATE InstallExecuteSequence SET Sequence=1450 WHERE Action='RemoveExistingProducts'"
objView.Execute
objDatabase.Commit
WScript.Quit 0