look up the tool in sourceforge called WiXEdit. Once you get the schema stuff down in WiX itself, using WiX Edit is very very intuitive to creating pretty complex installers. When learning WiX start with the XML directly. Adding custom actions and such are a breeze too, there's more and more examples popping up in blogs every month.

Windows installer XML > the rest. we use 2.0 in production, and 3.0 is looking really nice.