In order to change the location of a folder during install, you can use the "Directory Set With Formatted" build in custom action.
1. Add the "CostFinalize" standard action to the Install Sequence tree, using "Show Standard Action">"Before Initialization">"CostFinalize".
2. Use the "New Custom Action">"Directory Set With Formatted" menu item.
Select the folder whose location you want to change and then, in the Formatted Text, enter your new location, let say:
[ProgramFilesFolder]lotusnotes .
The content of that folder will be installed in "X:\Program Files\lotusnotes".