Is it possible to build msi file using installshield, so that I have one small msi that is installing files from separate folder, instead of having one biggler msi file that contains everything that is to be installed? The point is having msi installer and being able to replace files that are to be installed (if i want to update them sometime later) instead of rebuilding the whole project once i change some updated files.
This is not supported by MSI packages.
It doesn't matter if the files are placed in a folder next to the MSI or in a CAB archive. The actual file information is stored in the MSI database. So you cannot replace the installation files without updating the MSI.