For your scenario, I think you can do one setup project with the basic install and other setup projects for medium and large install.
Note: (1) You can add an extra dialog to specify the version type, but how can you stop the user to install the large version?
(2)VS Setup is inflexible in that way, because there is no access to the msi code. The tool that offers conditional compilation is Installaware but it is expensive:
http://www.installaware.com