VB ActiveX User Control fails to install on Windows 8 using IE10 with Code Download Error: (hr = 80070005) Access is denied.

Question

I have a VB VS2008 (.Net 2.0) ‘pure’ .NET based user control which used to be hosted in Internet Explorer.
Because that approach is no longer possible in VS2013 (.Net 4.5) I have converted it to an VB ActiveX user control.
This process involves digitally signing the user control DLL.
Creating a setup project resulting in a setup.exe and MyUserControl.msi.
Digitally signing both those components and then producing a cab file (which again is digitally signed).
IE10 should then be able to install this using an object tag as follows
<object id="editor" height="100%" width="100%"
 classid="clsid:EA47DB16-9272-4CB3-A800-C369A479396A" codebase="cab\MyUserControl.cab#Version=6,0,11,1" VIEWASTEXT>
If I use the setup.exe and MyUserControl.msi directly on the client windows 8 machine before starting IE10 then the control is already installed (shows up in Programs and Features) and it works.
If I don't do this and let IE install the control then it doesn't work.
What I see is the IE prompt
This website wants to install the following add-on: 'MyUserControl.cab'
Clicking on install produces the User Account Control MsgBox
Do you want to allow the following program to make changes to this computer
Clicking yes doesn't install the control as expected
The inf file that I'm using is currently
[version]
signature="$CHICAGO$"
AdvancedINF=2.0
[Add.Code]
setup.exe=setup.exe
MyUserControlSetup.inf=MyUserControlSetup.inf
MyUserControlSetup.msi=MyUserControlSetup.msi
[setup.exe]
file=thiscab
[MyUserControlSetup.inf]
file=thiscab
[MyUserControlSetup.msi]
file=thiscab
[Setup Hooks]
RunSetup=RunSetup
[Deployment]
InstallScope=user
[RunSetup]
run="%EXTRACT_DIR%\setup.exe"
I have defined the registry setting ForceCodeDownloadLog
Examining the temporary internet files location after trying to install using IE10 I can see the following
*** Code Download Log entry (15 Jan 2015 @ 11:49:18) ***
Code Download Error: (hr = 80070005) Access is denied.
ERR: Run Setup Hook: Failed Error Code:(hr) = 80070005, processing: %EXTRACT_DIR%\setup.exe
LOG: Reporting Code Download Completion: (hr:80070005 (FAILED), CLASSID: ea47db16...,

Answer 1

The problem here was the cab file.
Using ProcessMonitor I found that the following entry was generated at the time of failure
16:48:00.9222751            2920      IEInstal.exe         CreateFile              
C:\Users\Jim\AppData\Local\Temp\IDC2.tmp\setup.exe             NAME NOT FOUND               Desired Access: Read Attributes, Read
Control, Synchronize, Dis, Options: Synchronous IO Non-Alert, Non-Directory File, Disallow Exclusive, Attributes: n/a, ShareMode: None, AllocationSize: n/a
Analysis of the contents of the cab file using PeaZip indicated that it didn't contain setup.exe which confused me for a while as the makecab /f MyUserControlSetup.ddf produced no errors.
The MyUserControlSetup.ddf contained
.Set DiskDirectoryTemplate=cab
.Set CabinetNameTemplate=DocEditor.cab
MyUserControlSetup.inf
MyUserControlSetup.msi
setup.exe
Using makecab /f MyUserControlSetup.ddf /v3 I saw that the output was being written to 3 'disk' files but only one was present in explorer after it finished.
So I guessed that the output was for floppy disks and changed MyUserControlSetup.ddf to contain
.Set MaxDiskSize=CDROM
.Set DiskDirectoryTemplate=cab
.Set CabinetNameTemplate=DocEditor.cab
MyUserControlSetup.inf
MyUserControlSetup.msi
setup.exe
PeaZip now indicated that the cab file contained the 3 files I expected and using that cab in the codebase attribute installed my ActiveX control