Here is the procedure for creating a setup in Visual Studio 2008.
Select File and Add New Project.
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Now, select Setup and Deployment.
From that, select Setup Project from the Visual Studio installed templates.
Next, add the name and path of the setup and click on the OK button.
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Right-click on the Application Folder and Add Project Output from the options.
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Now, a dialog box will open. Select Primary output and click on the OK button.