I am still having this problem. This is the closest I have come to a solution that works, and yet it doesn't quite work. Here is (most of) the code:

 <Product Id='$(var.ProductCode)'
UpgradeCode='$(var.UpgradeCode)'
Name="Pathways"
Version='$(var.ProductVersion)'
Manufacturer='$(var.Manufacturer)'
Language='1033'>

Maximum="$(var.ProductVersion)" IncludeMaximum="no" Language="1033" Property="OLDAPPFOUND" />

-->

-->

-->

There is a later version of this program installed.

The problem I am having is that I need the two files in the Database component to replace the previous copies. Since these files are unversioned, I have attempted to use the CompanionFile tag set to the PathwaysExe since that is the main executable of the application, and it IS being updated, even if the log says it isn't! The strangest thing about this is that the PathwaysLdf file IS BEING UPDATED CORRECTLY, and the PathwaysMdf file IS NOT. The log seems to indicate that the "Existing file is of an equal version (Checked using version of companion)". This is very strange because that file is being replaced just fine.

The only idea I have left is that this problem has to do with the install sequence, and I'm not sure how to proceed! I have the InstallExecuteSequence set like I do because of the SettingsXml file, and my need to NOT overwrite that file, which is actually working now, so whatever solution works for the database files can't break the working settings file! ;)

The full log is located at: http://pastebin.com/HFiGKuKN

PLEASE AND THANK YOU!