I built an MSI using a Visual Studio 2005 web setup project. This type of project is a simpler install than a web application project, but there is no way to pick the target folder for the install.
An article explains how to modify an MSI (http://www.codeproject.com/KB/install/ChangeVDirWebSetupProject.aspx), but at the end of the process the new MSI is generating errors trying to install on a Vista Home Premium machine.
I had a bit of trouble generating a log file, so here is the working example:
c:Installs>msiexec /i MyPackage.msi /l* MyLog.txt
this generates a local file log in MyLog.txt