MCA,
Using a file as a flag works, but then you need to do some checking to make sure the install took. Then there's always the possibility the file may be deleted. If the install routine writes the uninstall key to the registry why not use it. That way, if the user removes via add/remove, the script will just put it back. You could write your own key to the registry if the install doesn't write something you can use as a flag.
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