I created an installer with Visual Studio 2010 Version 10.0.40.219.1 SP1 Rel. My application is built/compiled for x86 and requires VC++ runtime libraries. Thus, the setup p
This happens because the prerequisite detection criteria is incorrect.
A solution is to create your own custom prerequisite with a correct criteria. Perhaps this article will help: http://blogs.msdn.com/b/astebner/archive/2010/05/05/10008146.aspx
Visual Studio setup projects do not support this. But it can be done by manually generating the required manifests.
You can find the manifests structure here: http://msdn.microsoft.com/en-us/library/ms229223(VS.80).aspx
These manifests can be generated automatically with the Bootstrapper Manifest Generator tool.
After generating the package manifests, you can add all these files (including the package) in a separate folder in the Visual Studio prerequisites folder, for example:
C:\Program Files\Microsoft SDKs\Windows\v7.0A\Bootstrapper\Packages\
You can then select the prerequisite in your setup project properties page.