|BUG: PATH Update Flakey in WIN95/98|
Windows Installer (even 2.0+) has a bug in updating "autoexec.bat" in Windows 95, 98 (and probably ME), you should ensure the value either contains no spaces (hard) or is surrounded by double quotes. I have seen this happen where "autoexec.bat contains a line such as "@PATH=blah..." (invalid syntax if the line contains spaces).
An example follows:
<$Component "ENVIRONMENT_AND_REGISTRY" Create="Y" Directory_="INSTALLDIR"> <$Path '"[INSTALLDIR]"'> <$/Component>