Look for the answer by imagi on this page: 
http://stackoverflow.com/questions/1064580/wix-3-0-throws-error-217-while-being-executed-by-continuous-integration
 
There was also a bug on Microsoft's Connect but I'm not seeing it right now.
 
> From: kmo...@profitstars.com
> To: wix-users@lists.sourceforge.net
> Date: Wed, 26 Jun 2013 14:46:31 +0000
> Subject: Re: [WiX-users] Validation through Visual Studio
> 
> Thanks for your reply.  How do I use the "set" command to get the size of the 
> block?  I ran it in both pre-and post-build, but I don't know how to tell if 
> what I see is too big or not.  What is too big?
> 
> -----Original Message-----
> From: Blair Murri [mailto:os...@live.com] 
> Sent: Wednesday, June 26, 2013 1:51 AM
> To: General discussion for Windows Installer XML toolset.
> Subject: Re: [WiX-users] Validation through Visual Studio
> 
> You could try to confirm it by running a "set" command in your build to 
> measure the size of your environment block, but it'd guess that is your issue 
> (VS adds to the environment block). I'd need to search again for the 
> reference to the bug to remember what the size limit was.
>  
> > From: kmo...@profitstars.com
> > To: wix-users@lists.sourceforge.net
> > Date: Tue, 25 Jun 2013 19:24:44 +0000
> > Subject: Re: [WiX-users] Validation through Visual Studio
> > 
> > Sorry, let me clarify: the Windows 7 machine is my development machine.  I 
> > am a local admin, and I can code and compile in .NET, and create and 
> > compile WiX projects, etc. from this machine with my company network logon 
> > with no other issue.  
> > 
> > I have run installs, including Visual Studio and SQL Server (and Orca).
> > 
> > I couldn't validate through InstallShield after we moved to the Windows 7 
> > machine a while ago, but I thought that was an IS problem, since we are a 
> > on an old version (IS 2009).
> > 
> > I don't seem to have a problem running the Windows Installer, just 
> > validating.  Orca tells me that "The validation engine could not start".  
> > 
> > When I compile a WiX project, Visual Studio's message is "light.exe(0,0): 
> > warning LGHT1105: Validation could not run due to system policy. To 
> > eliminate this warning, run the process as admin or suppress ICE 
> > validation."
> > 
> > I couldn't find much on the Web on that warning, and what I did find talked 
> > about setting the DisableMSI system policy.  However, Microsoft says "On 
> > Windows XP, Windows Vista, and Windows 7, the Windows Installer is enabled 
> > for all applications. All install operations are allowed." And my registry 
> > has this policy set to 0, with is also "enabled for all applications".
> > 
> > 
> > -----Original Message-----
> > From: Blair Murri [mailto:os...@live.com]
> > Sent: Tuesday, June 25, 2013 2:00 PM
> > To: General discussion for Windows Installer XML toolset.
> > Subject: Re: [WiX-users] Validation through Visual Studio
> > 
> > Can you install an MSI from the same user account/environment? Are you an 
> > interactive user or are you running from a service or a scheduled task?
> >  
> > Validation uses the same Windows Installer service that installation 
> > transactions use.
> >  
> > Also I found a bug report that says that an environment block that is too 
> > large can cause a failure to connect/start the MSI service, so you may try 
> > removing things from your environment variables to bring the overall size 
> > down.
> >  
> > Blair Murri
> >  
> > > Date: Tue, 25 Jun 2013 10:30:52 -0400
> > > From: kmmonr...@gmail.com
> > > To: wix-users@lists.sourceforge.net
> > > Subject: [WiX-users] Validation through Visual Studio
> > > 
> > > I'm using VS 2010 SP1 on a Windows 7 machine. When I build in VS, I 
> > > get a message that I can't validate due to system policy.  I tired 
> > > to validate through Orca, and got an error that the validation engine 
> > > couldn't start.
> > > 
> > > Does anyone know what system policy has to be changed to let me run 
> > > validation?  I am a local admin on my machine, and VS shows that it 
> > > is running as an administrator.
> > > 
> > > Thanks!
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