Answer

Sometimes you wish to create an installation package that has the source files next to it, but since there are to many files it would be nice if you could place them into a main folder next to the MSI package.

Settings that should be applied to the project:

• go to Media page, under Media Tab and select radio button "Place files unpacked in folders next to the MSI database"
• go to Files and Folders page and create a new subfolder directly under "Application Folder"
• move all the files and folders of the appplication that were under "Application Folder" under the newly created folder
• double click the new folder to show the "Folder Properties Dialog" dialog
• in the new dialog select checkbox "Install folder content into the parent folder"

When you will build the project with the above settings you will have the MSI database placed next to the folder containing all the source files of the package.