It sounds like an issue with IS when building from the command line (what the InstallShield action ultimately invokes to actually compile a script). You can verify this by checking the 'Log the command-line that is used' checkbox on the Options tab, rebuilding the step, then copying and pasting the command-line from the build output to a Command Prompt and running it from there. If it occurs outside of VBP, you'll need to open a support incident with the vendor of IS. Otherwise, we'll need a reproducible case to investigate further, including:
1) The info from Help | About | Install Info
2) The .bld file used to build
3) A build log file
4) An IS script that fails in this manner
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