I'm positive. The tlb will most likely show up under Detected Dependencies, in which case you should right-click and Exclude it. Same with the ESRI assemblies and anything else that is guaranteed to be on the target machine. The installer package should include the Primary Output for your application as well as any dependencies, such as code libraries, 3rd party assemblies, etc. that are not typically installed on the target machine.
Also note, the instructions I referenced are for ArcGIS Desktop 10. If you're not using 10, then you may be getting the error because it can't find esriRegAsm.exe when the installer class code runs.