Having upgraded a wise template to Wise 7, there was an annoying exception encountered which you may also encounter when you upgrade your product’s wise template.
The old wise template is for Wise 5.2, and it has a “Virtual Directories”, which can deploy a Virtual Directory to user’s machine.
Wise 7 can open the Wise 5 template successfully, and the “Virtual Directories” is moved to “Web Files” automatically, and everything seems fine.
The package can successfully installed on Win Server 2003, and the website is also created under default website.
But, when I try to install it on WinXP, this error interrupts the install. 
(This screen shot is from a test package, so it shows [Product Name].)
The log says:
Action 14:39:38: WiseVirtDirCallDll.
WiseWeb: Action CreateWebSitesAndVDirs starting...
Action ended 14:39:39: InstallFinalize. Return value 3.
So, it must caused by the deployment of the website.
Then I found http://forums.altiris.com/messageview.aspx?catid=20&threadid=44312&enterthread=y. Basically you can only install ""websites"" on Server editions of software as they (I am lead to believe) are the only ones that can handle host headers correctly.
What you need to do is to set this as a ""VirtualDirectory"" rather than a website, this will remove the OS limitation.
When you do this you have to install the actual files to a different location, i.e. you cannot have the virtual directory at c:\inetpub\wwwroot\mysite which has the local path of c:\inetpub\wwwroot\mysite. So install the files into program files and then you should be able to make the virtual directory alias the local installation folder.
I realized that it may try to create the “Default Web Site” website as well.
So I remove all and add the Virtual Directory again:
Then the install packet can deploy the website on both Win2003 and WinXP successfully.