As stated in the license agreement, "Flexera Software grants Licensee the right to install and use the software on a single computer to be used exclusively with Visual Studio and the right to install and use up to two (2) additional instances for use within a Team Foundation Server environment".
The latter is exactly what I did: i installed the InstallShield 2012 Limited Edition on a Team Build machine (Team Foundation System 2012), where no installations of Visual Studio exist. Now, I can correctly compile and build my solution containing an ISL project. The problem is that when I run the built setup.exe, a message stating "This Setup was created with an EVALUATION VERSION of InstallShield" is shown.
So, the question is: how can I activate InstallShield 2012 Limited Edition on a Team Build machine where Visual Studio hasn't been installed?
You need to run the License Activation on your TFS Build Server.
for the spring 2012 edition of Installshield LE the activator program can be found at C:\Program Files (x86)\InstallShield\2012SpringLE\System\TSConfig.exe
this will bring up a dialog box, and you can enter your activation code they sent when you registered for the InstallShield LE.