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Basically all I need to do is check to see if a certain file exists in one of a few different directories (php.ini), read that file, and find a line giving me the location of a certain directory (I could find it with regex), then I need to unzip the files into that directory, start the webserver & mysql if necessary (either Apache or IIS), and launch a browser window into that directory on localhost. I don't think I'll have to check the registry or write anything to the registry, though an 'uninstall' option would also be nice (just delete this directory and another extra directory). Any tips about which option would be better, the Veritas or the second Windows Installer under Platform SDK? Or other? And any other tips or sundry advice would be much appreciated.
Why don't you have a look at Nullsoft Installation System. It's free, scriptable, light-weight and easy to learn.
Also, if you do want to try Windows Installer, don't worry about not having a clean machine. These are just needed for repackaging. Repackaging is used to turn non-windows installer based installations into MSIs. For repacking you create a clean machine and take a snapshot of the files and the registry on that machine. Then you run the installer the software that you want to turn into an MSI. After that you create a second snapshot and compare the second to the first. The differences will be put into the MSI.
Now I'm having second thoughts: Maybe you can do it with Windows Installer (WI). WI can search for a file and it can read ini files. You can also create JScript or VBScript custom actions. I still think Nullsoft is easier to learn.