Prerequisite SQL Server says it failed but application is successful

I am including the standard Microsoft Visual C++ 2005 SP1 Redistributable Package (x86) in a Suite package.
If I include the PRQ file in a basic MSI package I can successfully install the prerequisite on Windows 7 x86.
If I include the PRQ file in the Suite package the install fails.
The command line looks correct, below is information from the debuglog file.