This is actually for me to remember how to do this in the future...
After numerous searches on the internet and months of struggling, I have finally found and managed to crack this. I found the information from two different sites and thus this consolidation here.
For us who still develop VB6 apps, which I am moving away from anyway in favour of the cloud (Silverlight and asp.net) I guess I will need this.
1. Right click on setup.exe of your VB6 install and check Run as Administrator with XP SP 3 compatibility pack. I tried Windows 7 compatibility, it also worked.
2. During the setup, go to components and select everything you want to install except for "Data Access". If "Data Access" is selected, the install will hang even though everything will be installed. Disabling "Data Access" ensures that the install completes and restarts your computer to finalize the install. Why this hangs the system is beyond me. LOL.
3. I am using a 64bit machine, this is not supported by Microsoft and will not be supported as VB6 is 32 bit and should be hosted in 32 bit system. Thus some controls in my system didn't work. I found my listview control didn't want to burge at all.
4. Download and install VB6 Service Pack (SP6) Runtime Extended (what??) from http://support.microsoft.com/kb/957924?wa=wsignin1.0
5. Now you can start vb6 ide and code, everything should be mnca!
6. Step 1 done, now to code and install my VB6 app in some WinXp, Vista and & 7 machine!! crossing fingers
Now for me to de-install my hyper-v where I was running win7 to install vb6, ms office etc. Maybe not, need that to test my builds...