The long Exec
is installing .NET 3.5, and out script is based off this one:
http://www.blackhillsoftware.com/blog/2006/06/26/using-innosetup-with-the-dotnet-fra
Although it probably would be easy, I don't recommend hiding your installer while the .Net installer runs. I've seen other installers do that, and when it happens, I think the installation is finished, and then I'm confused when I find that it's really not. (And when the installation really is finished, I can't be sure of that, either. Maybe it just hid itself again.)
You can display custom pages in the Inno Setup wizard. Making such a page show a progress bar and keeping it accurate would probably be a challenge, but at least you could display a message on the wizard page saying that your installer is waiting for the .Net installer before proceeding. See the "Using Custom Wizard Pages" section of the help file.