Hi Elyse,
yes, I've solved (sorry for not to have posted this).
I have discovered that that setup install the application and MSXML, SOAP, and so on.
It was build with installshield shipped with VFP7 which doesn't manage XP as target OS and so MSXML *.msm doesn't proper install on XP.
Creating the same setup package using installshied shipped with VFP8 has solved the problem.
Are you using latest version of Installshield?
Also, if you have not done this yet, I suggest you go to the installshield web site and make some search, I've found useful information there.

Franco

>Did you resolve this? I'm getting Internal Error 2763 and wondering if it could be related.
>
>>Hi all, I'm encountering this error during the setup process of a mine application on a Win XP machine.
>>The setup seems to work and the application is installed but at the "very end" of the process this error occour.
>>This happens on WinXP machines, not on win 2000, ecc. .
>>MSDN doesn't give a lot of information:
>>
>>"Cannot write script record. Transaction not started"
>>
>>Any suggestion?
>>
>>Thanks, Franco