As taken from http://blogs.msdn.com/astebner/
archive/2006/08/23/715755.aspx

"Hi Didier - You should not try to install this vcredist package using 
a nested install.  Performing nested installs causes problems with 
installing hotfixes for the child packages.  You will need to use some 
kind of chainer to launch the vcredist setup package in silent mode, 
and then launch your main MSI setup afterwards."

vcredist 8 information: http://blogs.msdn.com/astebner/
archive/2007/02/07/update-regarding-silent-install-of-the-vc-8-0-
runtime-vcredist-packages.aspx

Some hints on how to redistribute vc++ libraries:

http://blogs.msdn.com/vcblog/archive/2007/10/12/how-to-redistribute-the-
visual-c-libraries-with-your-application.aspx