Kai,
I'm on WinXP SP2, SQLServer 2008, VS 2008
One thing I realised when going through the install again for interest purposes, if you do not add the object qualifier in the setup wizard, all seems to be OK. When you do add an object qualifier, one gets the "undefined ... Succeeded" lines in the installation log in the wizard.
I also found that, extracting the upgrade package over the Install package, duplicated all the tables and procs in the db WITHOUT the object qualifier. That led me to think there is a bug when adding the OQ in the wizard setup.
I have it all setup in a clean reliable way now. Yes it is frustrating but a little digging, intuition (if one can call it that) and common sense, all worked out.
Now to transfer my dev modules to this setup... here goes!