how to change the destination directory of a component using the InstanceId in multi instance installation in Basic MSI project.
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Use a Type 51 set property custom action scheduled before CostInitialize to transform INSTALLDIR based on your company\product and instance ID. Make sure that all components either a) have keyfiles or b) have unique guids for each instance. Since b is such a pain in the rear I will typically go out of my way to have key files for all components even if that means things like an AppPoolComponent installs a apppool_readme.txt with nothing more then readme in it.

Christopher Painter
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I used a custom action to modify the properties which were used as destination directories. Multiple instance is supported by msi installers using product code transformation. – TrustyCoder Apr 22 '15 at 16:08
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Please feel free to accept my answer. PS- I first blogged about nearly 9 years ago. http://blog.deploymentengineering.com/2006/10/multiple-instance-msis-and.html – Christopher Painter Apr 22 '15 at 16:23