When trying to install VB5 on my ol' P1, I encountered an error while attempting to copy the files...
Disabling LiteStep temporarily by just setting explorer back to the shell seems to do the trick, I could install just as 'usual', then re_enabling LS doesn't seem to give any errors or so, thus it seems it's only the installer that is bothered by LS.

I was just wondering what causes this, and if it can [should?] be fixed.

Some M$ applications check to make sure that Exploder is the shell of choice. You will have no problems running VB5, just problems with installers. If I remember right it had to do with how M$ added applications to your start menu.

do you use liteman?

That's right, I runs like usual.
Isn't there a way to trick those apps into thinking Explorer is running?
And ehm... about liteman.. What exactly is LiteMan?
Does it do 'the trick'?

liteman adds DDE support to LS. some installers need that. it should be loaded in your personal.rc.