jwyother,
I spoke with R&D regarding this error. When the setup project imports the primary project output, it should assign values to the fields [$OutputDirectory] and [$TargetAssembly]. For some reason, it is not, and what we are seeing is the raw macro code. I have passed this information along to R&D so that they can let Microsoft know of this issue.
As a possible work around, instead of adding the project output, you can add the actual .exe file that is being created. In that case, you will probably have to add all the assemblies and references manually. You can find information regarding distributing C++ applications in the Measurement Studio help under "Deploying Measurement Studio Windows Applications"
Josh W. | National Instruments | Applications Engineer
Josh W.
Certified TestStand Architect
Formerly blue