This does make sense, but reinstalling should change all the related REG entries to point to the new location when it installs. I would think that in general it should work, but there could be cases where it doesn't. The way i see it you can always build everything into the rom and then if you find an update for a program that you need just install the cab. If it works great you just use the program memory like you would if it wasn't in the rom. If not though you could potentially remove it from the kitchen and try again, but this wouldn't be my first choice. Either way though (even if the cab didn't work) it could be made into an OEM and built into your next kitchen ROM.
EDIT: Oh yeah problems with the upgrade program itself would still be possible. if the cab is looking for a specific file before it does the update or something to check the old version that could cause an issue. Not sure how many WM5 programs act like this though. I think even the VC1.6 just creates an updated CAB which does the full install.
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