SharpDevelop 3.0 now supports
WiX 3.0.
There are some changes to how things work compared to the
WiX integration in SharpDevelop 2. The differences will be
covered in the following sections.
WiX Project Templates
There are some new WiX project templates available. A basic
empty project template and a template for each of the standard
WiX UI library dialog sequences.

Adding WiX Extensions
WiX extensions are now displayed in the project browser instead
of in the project options. They can be added by right clicking the
WiX Extensions folder and selecting Add WiX
Extension.
.
Project Options
The Library and Linking tabs have been removed from the project
options since the WiX extensions can now be added from the project
browser.
The Compiling tab has some new options as shown below.

The WiX Variables field can be used to override the
standard WiX UI library settings. In the screenshot above the
standard licence agreement and dialog background bitmap are being
replaced with new ones.
The Suppress ICEs field is used to stop WiX from showing
errors or warnings for particular
Internal Consistency Evaluators (ICEs). After building your
installer WiX now validates it against a standard set of rules
which saves you from having to use another validation tool such as
Orca.
Localized string files are no longer specified in the
Application's tab. Instead add the file to the project and
change its Build action to Embedded Resource.
Other Editors
If you want integration with Visual Studio 2005 or 2008 then
please check out Justin
Rockwood's
Votive.
Rob Mensching has a
list of WiX editors, including commerical ones, on his blog.
It also looks like a
future version of Visual Studio will ship with WiX.