Replace DemoShield to launch setup.exe

I support a software development company that produces over 200 different
software packages. When they distribute these different software packages (via
CD) the end-user is faced with a DemoShield front end during Installation; in
which case the user selects the software of choice and DemoShield begins the
Installation process for that selection.

I have been asked to investigate the use of Flash to replace the DemoShield
process and I have several questions that I was hoping some Flash genius out
there could answer for me.

1. We would like to use Flash MX 2004 components and XML retrieveable
capabilities to bring in the information for each piece of software. For
example the XML file would be bundled with the CD and at runtime would populate
the swf with information regarding a directory for product images (logos),
general description, tech notes, the directory for the setup.exe file, and so
on... Is this an acceptable approach?

2. The current prototype I have developed launches a setup.exe file, but I get
a dialogue box asking about "Open" or "Save" first...How can this be avoided?

3. Basically, is Flash an eligible solution to replace DemoShield without
sacrificing end-user easability and/or proper application installation best
practices?

Cash could be rewarded for anyone devoted to assisting me with these
questions...

Thanks.