Alex,

"Merge Modules" are a feature provided by the Microsoft Windows Installer MSI technology which enables the encapsulation of a component or set of related components and their resources, and the subsequent "merging" of this module with install packages which require the component or component-set.

Native Win32 .exe installers do not support MSM. However, the upcoming SetupBuilder 7 will have a feature to convert standard Windows Installer Merge Modules (.msm) into native Windows Installer runtime package for native Win32 SetupBuilder installer applications.

But IMO, converting the VS 2008 merge module into a deployable .MSI runtime would not reduce your installer size.

Friedrich