I'm testing this with mercurial MSIs, but it's the same for other packages. I've created a new group policy and added an old version of mercurial to User software installation as a Published package.

On a Windows 7 client I install the package through Programs and Features. The installation works fine. Now, I would like to publish an updated version of mercurial.

I create a new Published package. Under 'Upgrades' I configure it to replace (upgrade also doesn't work) the old version and mark this upgrade as 'Required'. The old package is not removed. The Windows 7 client is then restarted.

When I log back in, I see a status message saying something like 'Removing managed software Mercurial ...'. There is no message about installation of the upgrade. If I look in Programs and Features, I can see the new version of mercurial listed. However, the actual mercurial directory under Program Files is missing. It's as though the installation recorded information about the MSI, but didn't actually install anything after removing the old version.

As I mentioned, this isn't specific to mercurial. I've tried using other apps and have yet to find one that can be upgraded via a Published package. Using Assigned packages in Computer Configuration works without problems, but I would like this software to be optional rather than required.

Ideas?