First all the info you need is in post #1, in pages 1 and 2 you'll find outdated info. The process to build the add-ons and the installing are different things. To build an updated AIO add-on you'd need 1.1 and its hotfixes and 3.5 SP1 redist and its hotfixes (including 2.0 SP2, 3.0 SP2 and 3.5 SP1) in your work folder, depending on your target win version (not host). After you get the AIO add-on, you don't have to worry about the installing order priorities because the merged installers respects it, only if you build individual add-ons for each FX version, you have to keep the priorities described when inserting the add-ons in nLite.