The exception:
An error occurred while validating. HRESULT = '80004005'
when you build a setup project by Visual Studio 2008, you may got the exception, it may caused by that you have one of a project property setting conflict,change all the involved projects from ToolsVersion="4.0" to ToolsVersion="3.5".
The steps:
1. right click each project in solution view, click "unload project"
2. change the ToolsVersion="4.0" to ToolsVersion="3.5"
3. reload project.
4. rebuild all and the setup project.