This may error may occur when trying to compile an MSI where a file that does not exist as source is included in the package. This is normally due to the accidental inclusion of a temporary file during the repackage process. View the "File" table within your package editor (database view) and click the "File Size" column to sort the files in your package by file size. Any files with a size of zero, must either be saved off during the installation process for later inclusion in your package, or (more often) they may be safely removed from your package. Temporary files created during the installation process which are then removed upon completion are normally the cause of such a problem.
Other errors that may surface as a result of a zero byte file in your package include 1612 - source not found (the msi file is not were it is expected) and 1625 - path to sourcefile wrong.
One visitor adds, "Most of the time, opening the package with Wise, converting it to a wsi (wise project) and compiling it again solves this issue"
Depending upon the tool you are using to manipulate your MSI setup packages, it is normally best to remove any files using the GUI view or your editor and not to delete directly from the FILE table- this is due to potential references to these files elsewhere in the MSI database that may not be taken to account when editing the table directly.