It's a bug in the msxml merge module. See Re: Installing MSXML3.MSM... Thread #793768 Message #794501

>I added the XML 3.0 and SOAP SDK Files merge modules into my setup project by checking corresponding checkboxes in the Objects/Merge Modules page of the ISE VFP Limited Edition. However, after the setup was run in the target computer, I didn't find the MSXML3.DLL and the SOAP files (e.g., MSSOAP30.DLL) in any folder of the target machine. Were there any missing steps I needed to do?
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>TIA