Exactly how did you give that local path to the utility? The reason I ask is
that if you made a custom action that passed [TARGETDIR] via the
CustomActionData custom action property, that approach should still work.

Signature
Phil Wilson [MVP Windows Installer]
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> Does anybody know how to update the web.config file in a custom
> action? I tried to give a local path to the web.config to my utility
> that does the job well in a case of regular app install but it does
> not work in the case of the web install.