Cosmin,
I figured this out by comparing the existing aip and a new project. It seems that the Advanced Installer program does not upgrade the AIP project file correctly. Our existing aip has the following header.
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<DOCUMENT type="Advanced Installer" CreateVersion="6.1.1" version="7.0.1" modules="enterprise" RootPath="." Language="en">
It was missing the following two lines
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<ROW Action="AI_SqlMaint" Description="Executing maintenance SQL scripts" Template="Connection: [1] Script: [2]" DescriptionLocId="ActionText.Description.AI_SqlMaint" TemplateLocId="ActionText.Template.AI_SqlMaint"/>
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<ROW Action="AI_SqlMaint" Type="11265" Source="sql.dll" Target="OnSqlMaint" WithoutSeq="true"/>
I also had to change the following line from
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<ROW Action="AI_SqlInstall" Condition="(VersionNT >= 500) AND (NOT Installed)" Sequence="5401"/>
to this
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<ROW Action="AI_SqlInstall" Condition="(VersionNT >= 500) AND (REMOVE <> "ALL")" Sequence="5401"/>