The problem is that you have not included all of the dependencies needed. The documentation (aka the help file) has a "Distributing My App" topic. All files on this page should be distributed.
The "File In Use by another app" error should be handled by the installer. In effect, all that you want to do is to install those files only if they do not exist on the machine.
So in short...
Try removing the OLE and MFC files from your installation. Then make sure that every file listed under the dependencies topic is included, even if it is not listed for this type of application. This should get you going.