The VS team has produced a 'preview' version of a new plug-in...
Setup projects in Visual Studio .NET 2003 can be used to install the .NET Framework with your application, but only if you have installed the optional Visual Studio .NET Framework Bootstrapper Plug-in on your development computer. The Visual Studio .NET Framework Bootstrapper Plug-in modifies the behavior of the Setup project's Bootstrapper property to include the .NET Framework bootstrapper as well as the Windows Installer bootstrapper. The .NET Framework redistributable is then packaged with your application; when the user runs the bootstrapper setup.exe, it checks for the correct version of the .NET Framework at install time and if necessary, installs it before installing your application.
and placed it up onto a gotdotnet workspace... the bits themselves just went up today in English and Japanese and I'll be putting the basic documenation up as a third release tonight...

Enjoy!

[Listening to: Beginner's Waltz - Kent Sharkey - None (01:24)]