Symptoms
When you run Visual Studio .NET Setup, you receive a “Setup Failed” error message when Visual Studio .NET Setup completes. No other error messages appear. The following string appears in the log file VSMSILOG*.txt (located in the Temp folder):

MSI (s) (54:F0): Executing op: CustomActionSchedule(Action=VSCA_AddShareAndPermissions.3643236F_FC70_11D3_A536_0090278A1BB8,ActionType=1025,Source=BinaryData,Target=AddShareAndPermissions,)MSI (s) (54:F0): Creating MSIHANDLE (1263) of type 790536 for thread 2800Action ended 15:41:08: InstallFinalize. Return value 3.
Resolution
This behavior occurs when the Home Directory in Internet Information Service (IIS) for the Default Web is missing or inaccessible because of permission issues. The missing or inaccessible Home Directory causes the Visual Studio .NET Setup custom action AddShareAndPermissions to fail.