Confused with Wix bootstraper - wix

Question

I am having trouble understanding wix documentation. I have created a simple installer that allows user to select a destination folder for app. It looks something like this:
<?xml version="1.0" encoding="UTF-8"?>
<Wix xmlns="http://schemas.microsoft.com/wix/2006/wi">
<Product Id="*" Name="AppName" Language="1033" Version="1.0.0.0" Manufacturer="Manufacturer" UpgradeCode="guid">
<Package InstallerVersion="200" Compressed="yes" InstallScope="perMachine" />
<MajorUpgrade DowngradeErrorMessage="A newer version of [ProductName] is already installed." />
<MediaTemplate />
<Feature Id="ProductFeature" Title="SetupProjectFeature" Level="1">
<ComponentGroupRef Id="ProductComponents" />
</Feature>
<Property Id="WIXUI_INSTALLDIR" Value="INSTALLFOLDER" />
<UIRef Id="WixUI_InstallDir"/>
</Product>
<Fragment>
<Directory Id="TARGETDIR" Name="SourceDir">
<Directory Id="ProgramFilesFolder">
<Directory Id="INSTALLFOLDER" Name="OeeCoach" />
</Directory>
</Directory>
</Fragment>
<Fragment>
<ComponentGroup Id="ProductComponents" Directory="INSTALLFOLDER">
<!-- TODO: Insert files, registry keys, and other resources here. -->
<Component Id="EntityFramework" Guid="guid">
<File Id="EntityFramework.dll" Source="../App/bin/Release/EntityFramework.dll" KeyPath="yes" />
</Component>
<Component Id="MvvmLight.Extras" Guid="guid">
<File Id="GalaSoft.MvvmLight.Extras.WPF4.dll" Source="../App/bin/Release/GalaSoft.MvvmLight.Extras.WPF4.dll" KeyPath="yes" />
</Component>
</ComponentGroup>
</Fragment>
</Wix>
Now I need to check for .net 4 and its prerequisites, but I could not understand hot to do this. Documentation says that I need to use Bundle element, but compiler seems to complain when it is together with Product element in same wix file.
Any help is appreciated.

Answer 1

The bootstrapper is a separate project from your setup project. If you are using Visual Studio, add a new project to your solution and choose Bootstrapper project (instead of Setup project).