Visual Studio 2005 Windows Installer - custom folder not created on target

Question

I created an installation project for my C# application using the windows setup in visual studio 2005.  Everything appears to work except creating custom folders.  I am trying to have my installation create a root folder on my target system under the C: drive with several subfolders.  To do this, I selected the setup project, then I selected the File System on Target Machine and used Action->Add Special Folder->Custom Folder to create myCustom folder.  At the creation of myCustom folder in the setup project, the system set the defaultlocation property to [TARGETDIR], AlwaysCreate to False, Property to NEWPROPERTY1 and Transitive to false.  No folder was created at install.  I changed the AlwaysCreate to true, still nothing.  I changed DefaultLocation to C:, still nothing.  I changed Transitive to true, still nothing. 

To ensure there were no conflicts in privileges, I put the installation on my flash drive, re-booted and logged on as Administrator, and attempted the installation again.  Still my custom folder was not created.

Thanks in advance for any advice.  I'm stumped!

I would appreciate any help on this problem.