Since the offending dll is 3rd party from the perspective of NI, the only solution is to release a copy of the dependent lib with a different CSLID from the one that MS has taken over for its new purposes.
I am having problems with building a setup project in VS08 now. This week I installed Meas. Studio 8.5 and started having this problem. I tried registering the mergemod.dll, but will not fix the issue. When I build, it returns a failure stated "Unrecoverable build error". Anyone seen another solution for this???