Hi RichardArnold-1221,
The error occurs because .NET Frameworks 3.5 SP1 package only support Homesite. Only supports"Install Prerequisites from Component Vendor's Website".
Pertinent infomation from section 2.3.1.1 of the VS2008SP1Readme:
If the .NET Framework 3.5 SP1 bootstrapper package is selected in the Prerequisite dialog box for a Setup project or in ClickOnce publishing, and also the "Download prerequisites from the same location as my application" option is selected, the following build error is shown:
The install location for prerequisites has not been set to 'component vendor's web site' and the file 'dotNetFx35setup.exe' in item 'Microsoft.Net.Framework.3.5.SP1' cannot be located on disk.
To resolve this issue, there are some detailed solutions in the following threads you can refer to.
Visual studio 2010 setup project problem
VS2008 SP1 - Selecting .NET 3.5 SP1 prerequisite in setup project causes build error
Best Regards,
Daniel Zhang
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