Well I just updated from 2.06 to 2.09 and compiled an install script that I have been using for months. According to the 2.09 change log, a Root Directory Install problem was suppose to be fixed.
However I compiled the below code with 2.09 (original and Logging EXE/Stub builds) and in all cases can not install to a root. Check it out, compile the code below, and should see the Install button grays out when you backspace out the directory path to the root. Let me know, thanks.
Jnuw
; NSIS 2.09
!include "MUI.nsh"
!insertmacro MUI_PAGE_DIRECTORY
!insertmacro MUI_PAGE_INSTFILES
!insertmacro MUI_LANGUAGE "English"
Name "RootTest"
AllowRootDirInstall True
OutFile "RootTest.exe"
InstallDir "$EXEDIR"
Section "-Test"
MessageBox MB_OK "Hi"
SectionEnd