I am hoping the free (LE) version of InstallShield 2012 will be adequate for my needs. So far so good.
.NET Framework Dependency
.NET 4.5 ships with Windows 8 but it needs to be installed on Windows 7 which is my current deployment target. InstallShield lets you include this dependency and will even include the standalone redistributable and install it in the installation process.
Now when you build .net 4.5 will be included in the output. Deploy to your target machine Install and you get a prompt to install .net 4.5 then your installer starts up.
NOTE: For .NET 4.5, you will most likely have to reboot, which the installer will ask you todo.
After restart, the installer should pick up where it left off. If not, just fire it up manually.