Adding Components to the Web Setup Project
Since you plan to use the .msi Windows Installer file to deploy the Web Site, you do not need to add merge modules to the setup project. See Crystal Reports for .NET Framework 2.0 Windows Installer for more information.
To add output files to the Web Setup Project
In Solution Explorer, right-click WebSetup1, point to Add, and then click Project Output....
In the Add Project Output Group dialog box, select Content Files.
Leave the Configuration as (Active).