Article ID: 307196
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A nested installation of the MSI packages of the SQL Server 2000 Desktop Engine (MSDE) from a parent package within the InstallInitialize and InstallFinalize functions may fail with this error message:
Loading extended custom action library sqlcax.dll
Error 126 loading library sqlcax.dll
Action ended 21:15:09: InstallFinalize. Return value 3
A nested installation of MSI packages from a parent package of the SQL Server 2000 Desktop Engine is not supported. In this context, a nested installation is defined as:
You can use SQL Server 2000 Desktop Engine merge modules to merge Desktop Engine components directly to your package to meet your needs. Otherwise, you can open the Desktop Engine setup package directly without using a nested installation.