Visual Studio 2010 Beta 2 includes link to InstallShield Limited Edition
Some beta testers of Visual Studio 2010 pointed out that in the New Project dialog there is a new template called "InstallShield 2010". It's listed next to "Visual Studio Installer" under Other Project Types > Setup and Deployment. It's not a real template but only a button labeled "Enable InstallShield Limited Edition" as you can see in the screenshot from the Professional edition of Visual studio 2010 Beta 2:
Clicking this button takes you to another page with some explanation what InstallShield Limited Edition for Microsoft Visual Studio 2010 is, and a button "Go to InstallShield". However the link behind this button isn't (yet?) working, it redirects to the Microsoft homepage.
So it looks like Microsoft and Flexera Software are extending their cooperation to make a limited edition of InstallShield available to Visual Studio users. Users of Microsoft System Center Configuration Manager (SCCM) can already get a limited edition of Flexera Software's AdminStudio at no additional cost.
There is currently no information about the capabilities and limitations of this edition of InstallShield.
While it's good to see that Microsoft is going to offer Visual Studio users an alternative to Visual Studio Installer projects (which are still available) to create Windows Installer (MSI) setups, I'm still sad that they decided not to include the Windows Installer XML toolkit (WiX) with Visual Studio 2010, as they had planned previously. And since Visual Studio 2010 is still in beta, they could even decide not to include InstallShield either.
Speaking of WiX - the WiX toolset now supports Visual Studio 2010 Beta2: