Frazer,
There are several definitions for the "self extracting installer". In the
simplest case, it's an SFX archive just extracting all files required by an
application to the installation folder. Thus, it is pretty much the same as
"XCOPY deployment". Only application not requiring COM registration and
other advanced tasks can be deployed in this manner.
MSI installers utilize the Windows Installer technolohy. An MSI file is
actually a database containing information instructing Windows Installer on
all steps required to install an application. Windows Installer is a very
sophisticated engine capable of handling COM registration, version checks,
automatic uninstall and even custom tasks.
A self-extracting installer, by the way, can simply extract an MSI file and
launch Windows Installer after extraction.
Hope this anwers your question.