InstallShield 12 doesn't seem to work with VSTS.

I installed IS12 on Windows XP Pro SP2 with VS2005 Team Suite, but after creating ther simplest possible BASIC.MSI project I'm prompted for vs_setup.msi whenever I build it. Unfortunately, it doesn't seem to recognise the vs_setup.msi on the Team Suite disk and when I press cancel (a few times) IS12 crashes. I've removed IS12 and then reinstalled it - same problem.

Looking at the forums this seems to be a problem that has existed since IS7, but clearly it's not as sever.

When can I expect a fix?