diff --git a/resources/install/build.xml b/resources/install/build.xml
index 04c0765d6..78f5e7f33 100644
--- a/resources/install/build.xml
+++ b/resources/install/build.xml
@@ -423,6 +423,9 @@
             depends="load-properties">
         <property name="windows_native_path" value="${sc.basedir}\lib\native\windows"/>
         <property name="windows.jre.arch.file" value="${windows.jre.file}"/>
+        <condition property="windows.jre.arch.zip" value="${windows.jre.zip}">
+            <isset property="windows.jre.zip" />
+        </condition>
         <property name="windows.download.link" value="${link.download.windows32}"/>
         <property name="windows.package.name" value="${package.name}-${sip-communicator.version}-x86.exe"/>
         <property name="windows.arch" value="32"/>
@@ -434,6 +437,9 @@
             depends="load-properties">
         <property name="windows_native_path" value="${sc.basedir}\lib\native\windows-64"/>
         <property name="windows.jre.arch.file" value="${windows.jre64.file}"/>
+        <condition property="windows.jre.arch.zip" value="${windows.jre64.zip}">
+            <isset property="windows.jre64.zip" />
+        </condition>
         <property name="windows.download.link" value="${link.download.windows64}"/>
         <property name="windows.package.name" value="${package.name}-${sip-communicator.version}-x64.exe"/>
         <property name="windows.arch" value="64"/>
@@ -441,6 +447,12 @@
         <antcall target="build-installation-wix-base" />
     </target>
 
+    <target name="unzip-windows-jre" if="windows.jre.arch.zip.isset">
+        <unzip
+                src="${unzip.windows.jre.src}"
+                dest="${unzip.windows.jre.dest}" />
+    </target>
+
     <target name="build-installation-wix-base"
             depends="clean-install-windows,windows-generate-exe">
         <!--
@@ -515,6 +527,19 @@
             </fileset>
         </copy>
 
+        <condition property="windows.jre.arch.zip.isset">
+            <and>
+                <isset property="windows.jre.arch.zip" />
+                <not>
+                    <equals arg1="${windows.jre.arch.zip}" arg2="" />
+                </not>
+            </and>
+        </condition>
+        <antcall target="unzip-windows-jre">
+            <param name="unzip.windows.jre.src" value="${windows.jre.arch.zip}" />
+            <param name="unzip.windows.jre.dest" value="${light.dir}" />
+        </antcall>
+
         <!--
             This update-location.properties file is the only of interest to the
             MSI i.e. it gets installed on the user machine.
@@ -537,7 +562,6 @@
             <arg value="-ag" />
             <arg value="-cg" />
             <arg value="ComponentGroup_HeatExe" />
-            <arg value="-ke" />
             <arg value="-out" />
             <arg value="${windows.app.dir}\tmp\heat.wxs" />
             <arg value="-sfrag" />
@@ -555,9 +579,7 @@
                 out="${windows.app.dir}/tmp/component-refs.wxi"
                 style="${inst.resrc}/windows/heat-component-refs.xsl" />
 
-        <condition property="windows.is.64"
-            value="yes"
-            else="no">
+        <condition property="windows.is.64" value="yes" else="no">
             <equals arg1="${windows.arch}" arg2="64" />
         </condition>
 
@@ -568,7 +590,6 @@
         <filter token="WelcomeText1" value="${installer.welcome.wtext1}" />
         <filter token="WelcomeText2" value="${installer.welcome.wtext2}" />
         <filter token="WelcomeText3" value="${installer.welcome.wtext3}" />
-        <filter token="WINDOWS_JRE_FILE" value="${windows.jre.arch.file}" />
         <filter token="WINDOWS_IS_64" value="${windows.is.64}" />
         <filter token="WIX_PRODUCT_ID" value="${wix.product.id}" />
         <filter token="WIX_UPGRADE_CODE" value="${wix.upgrade.code}" />
@@ -585,20 +606,35 @@
         </copy>
 
         <!-- Execute candle.exe -->
-        <condition property="wix.var.Platform" value="x64" else="x86">
+        <condition property="candle.var.Platform" value="x64" else="x86">
             <equals arg1="${windows.arch}" arg2="64" />
         </condition>
+        <condition
+                property="candle.arg.var.JRESetup"
+                value="-dJRESetup=${windows.jre.arch.file}"
+                else="-nologo">
+            <and>
+                <isset property="windows.jre.arch.file" />
+                <not>
+                    <equals arg1="${windows.jre.arch.file}" arg2="" />
+                </not>
+                <not>
+                    <isset property="windows.jre.arch.zip.isset" />
+                </not>
+            </and>
+        </condition>
         <exec
                 executable="${wix.home}\candle.exe"
                 dir="${windows.app.dir}/tmp"
                 failonerror="true">
             <arg value="-nologo" />
-            <arg value="-dPlatform=${wix.var.Platform}" />
+            <arg value="-dPlatform=${candle.var.Platform}" />
             <arg value="-ext" />
             <arg value="WixUIExtension" />
             <arg value="-ext" />
             <arg value="WixUtilExtension" />
             <arg value="-dSourceDir=light" />
+            <arg value="${candle.arg.var.JRESetup}" />
             <arg value="installer-windows.wxs" />
         </exec>
 
diff --git a/resources/install/windows/installer-windows.wxs b/resources/install/windows/installer-windows.wxs
index f6840ba11..fb0d4cb69 100644
--- a/resources/install/windows/installer-windows.wxs
+++ b/resources/install/windows/installer-windows.wxs
@@ -109,7 +109,7 @@
   <ComponentGroupRef Id="ComponentGroup_RegistryEntries" />
 </Feature>
 
-<Media Id="1" Cabinet="Data1.cab" EmbedCab="yes" />
+<Media Id="1" Cabinet="Data1.cab" CompressionLevel="high" EmbedCab="yes" />
 
 <UI>
   <UIRef Id="WixUI_CInstallDir" />
@@ -184,6 +184,7 @@
       Value="LaunchApplication">
     <![CDATA[WIXUI_EXITDIALOGOPTIONALCHECKBOX = 1 AND JRE_VERSION >= "1.5" AND NOT Installed]]>
   </Publish>
+<?ifdef JRESetup ?>
   <Publish
       Control="Finish"
       Dialog="CExitDialog"
@@ -191,6 +192,7 @@
       Value="InstallJRE">
     <![CDATA[WIXUI_EXITDIALOGOPTIONALCHECKBOX = 1 AND JRE_VERSION < "1.5" AND NOT Installed]]>
   </Publish>
+<?endif?>
 
   <InstallUISequence>
     <Show Dialog="CExitDialog" OnExit="success">
@@ -237,9 +239,11 @@
       <![CDATA[NOT HAS_STARTUP_REGISTRY AND NOT (HAS_STARTUP_REGISTRY = "#1")]]>
     </Custom>
 
+<?ifdef JRESetup ?>
     <Custom Action="SetWIXUI_EXITDIALOGOPTIONALCHECKBOXTEXT" After="AppSearch">
       <![CDATA[JRE_VERSION < "1.5" AND NOT Installed]]>
     </Custom>
+<?endif?>
   </InstallUISequence>
 
   <AdminUISequence>
@@ -249,11 +253,13 @@
   </AdminUISequence>
 </UI>
 
+<?ifdef JRESetup ?>
 <CustomAction
     Id="InstallJRE"
     BinaryKey="JRESetup"
     ExeCommand=""
     Return="asyncNoWait" />
+<?endif?>
 <CustomAction
     Id="LaunchApplication"
     BinaryKey="WixCA"
@@ -279,10 +285,12 @@
     Id="SetIS_AUTOUPDATE"
     Property="IS_AUTOUPDATE"
     Value="1" />
+<?ifdef JRESetup ?>
 <CustomAction
     Id="SetWIXUI_EXITDIALOGOPTIONALCHECKBOXTEXT"
     Property="WIXUI_EXITDIALOGOPTIONALCHECKBOXTEXT"
     Value="Install Java(TM) SE Runtime Environment" />
+<?endif?>
 <CustomAction
     Id="UnsetCREATE_DESKTOP_SHORTCUT"
     Property="CREATE_DESKTOP_SHORTCUT"
@@ -329,9 +337,11 @@
     <![CDATA[NOT HAS_STARTUP_REGISTRY AND NOT (HAS_STARTUP_REGISTRY = "#1")]]>
   </Custom>
 
+<?ifdef JRESetup ?>
   <Custom Action="SetWIXUI_EXITDIALOGOPTIONALCHECKBOXTEXT" After="AppSearch">
     <![CDATA[JRE_VERSION < "1.5" AND NOT Installed]]>
   </Custom>
+<?endif?>
 </InstallExecuteSequence>
 
 <Property Id="HAS_DESKTOP_SHORTCUT">
@@ -370,6 +380,7 @@
      HAS_STARTUP_SHORTCUT
 </SetProperty>
 <Property Id="JRE_VERSION">
+<?ifdef JRESetup ?>
   <RegistrySearch
       Id="RegistrySearch_JREVersion"
       Key="Software\JavaSoft\Java Runtime Environment"
@@ -377,14 +388,17 @@
       Root="HKLM"
       Type="raw"
       Win64="@WINDOWS_IS_64@" />
+<?else?>
+  1.5
+<?endif?>
 </Property>
 
 <Property Id="ARPCONTACT" Value="@APP_EMAIL@" />
 <Property Id="ARPHELPLINK" Value="@APP_WEB@" />
 <Property Id="ARPPRODUCTICON" Value="Icon.ico" />
-<!-- we move from startup shortcut to registry entry, we
-    always set CREATE_STARTUP_SHORTCUT = 0 so on update
-    the old shortcuts will be removed
+<!--
+    We've switched the startup from shortcut to registry so we'll always set
+    CREATE_STARTUP_SHORTCUT to 0 in order to remove the old shortcut on update.
 -->
 <Property Id="CREATE_STARTUP_SHORTCUT" Value="0" />
 <Property Id="CREATE_FEED_REGISTRY_ENTRIES" Value="0" />
@@ -404,7 +418,9 @@
 
 <Icon Id="Icon.ico" SourceFile="sc-logo.ico" />
 
-<Binary Id="JRESetup" SourceFile="@WINDOWS_JRE_FILE@" />
+<?ifdef JRESetup ?>
+<Binary Id="JRESetup" SourceFile="$(var.JRESetup)" />
+<?endif?>
 
 </Product>