>Are you including the SMO references in your setup or you are using the SMO setup as is, after the initial setup of your application? I have found the second approach better as the SMO setup will make sure to install everything properly. It is however cool to have everything in one main setup. But, you can always have a post setup procedure which will be launched from the main setup, thus including the SMO setup file as a post process.

The SMO dlls are being added by me adding the Primary Output to the setup project as detected dependencies. Where would I find the SMO seutp?