The package directory is a directory structure that contains the files required to support the installation or removal options in the Package Definition File. When a job is created that uses a package, the contents of the package directory, including any subdirectory structure, are compressed and sent to the site servers of the target clients. When the compressed package is received at the site server, it is copied to the distribution servers specified in the job and decompressed. The package contents are then exported from the distribution server with the appropriate permissions set.
All of the files required to support the operation of the job must be included in the package directory, including any DLLs or configuration files required to support the operation of the setup program.
It is highly recommended that you add an option on your setup program to create this directory on a network share with all of the files required to support the installation (or deinstallation), including the SMS PDF file. This indicates that you are SMS-capable and will make it easier for administrators to use SMS with your product.