There are plenty of free installation systems - Do you need any open-source (free) one or something which works with Visual Studio?
I can recommend you to use NSIS NSIS (Nullsoft Scriptable Install System) or Inno Setup Inno Setup.
These two systems are easy to learn but really powerful, both are script based and very popular. There are many examples, tutorials and huge community around (also here on SO) them.
They can be integrated directly into Visual Studio with Visual & Installer addin (Visual & Installer website) (sorry for little self promo).
Here are few features:
- New project types: NSISProject and InnoSetupProject
- Full integration into Visual Studio IDE
- Visual Studio 2005, 2008, 2010, 2012 and 2013 support
- Build installers directly with other project types
- NSISProject and InnoSetupProject properties
- Syntax highlighting (coloring)
- IntelliSense Complete Word support
- IntelliSense Parameter Info
- IntelliSense Quick Info
- Navigation Bars support
- Complete linkage to the solution build process
- Quick jump from Error List window
- Go To support
- Hints and tips for writing scripts*
- Code optimizations*
- Opening script files (Go To file)
- IntelliSense Code Snippets support
- Creating custom Code Snippets
- Plug-ins recognition*
- Full version control system support
- Dynamic help system
- Cross-version compatibility for all Visual Studio versions
- Convert VS Setup projects (.vdproj) into NSIS or Inno Setup!
I think currently it is the best Visual Studio solution for creating installers :)