I\'m trying to move a solution I have over to Visual Studio 2012 and one of the project types is .vdproj.
According to this link this project type is not suppo
This will probably be long and boring because there's lots of steps, but I'd like to write up how to move from a Windows service installer .vdproj to the new InstallShield LE that's available in Visual Studio 2012.
Step 1: Create a merge module (.msm)
Follow the steps of this guide.
Notes:
Here is my isWix files view:

After you're done with the guide you should have an empty .wxs file that looks something like this:

Using the Component XML element pulled from here you should end up with a .wxs file that looks like this:

Hit build and you should now have a .msm file.
Step 2: Adding merge module to InstallShield
Redistributables Screen

If you're getting errors about the path being too long you might need to change the release location to something close to the root.

Here's a list of all the build errors for reference.
Now you should be able to run your installer and have it install/start a Windows service. A lot more work than .MSI files, we got it to generate in Visual Studio 2010, but overall it was not too bad.