>1) Why does an app that compiles as a 34k executable become an 8MB setup.exe after InstallShield? I know there are runtimes and other supporting files but jeeze!

I have one simple app (300K exe) and the setup.exe is now approaching 5MB, because I included the XML handling stuff. I'm using Inno Setup.

Your setup possibly includes runtimes for several languages.

>2) What can I do to prevent FOXUSER.FPT and FOXUSER.DBF from cluttering my desktop every time I use an app?

Also check your setup for the "executes in" directory. Something tells me your ISLE has defaulted to "executes in Desktop directory" - it should be executing in the directory where it's installed. Check the shortcut your setup creates.