Greetings,
Something else to check. Make sure that you do not have the "Register Files as ActiveX Servers" checkbox selected for any of your file groups. [Because for ActiveX servers that are .EXEs - we register them by running the executable at the end of the installation, passing the /reg flag on the command line.]
If this doesn't help, then try using the "Default" button on the distribution kit dialog to reset your settings back to the default.
Regards,
- WesW / NI