Question

If I create setup package using Inno Setup, will the setup program have administrator privileges allowing it to register DLLs etc. ?

Also, if the setup package executes a program as part of its operations, will that program be run with the administrator rights ?

Answer 1

This is controlled via the PrivilegesRequired directive.

When set to admin (the default) or
poweruser, Setup will always run with
administrative privileges. If Setup
was started by an unprivileged user,
Windows will ask for the password to
an account that has administrative
privileges, and Setup will then run
under that account.

If the setup executes a program from the [Run] section, then you can control the privileges of the spawned process with the runascurrentuser and runasoriginaluser flags.