Technically, it depends on the type of application, but for most people by checking off just the VFP runtime libraries gets the job done. It automatically also selects things like the core MS libraries.
For what it's worth, I hate using Installshield for my applications, so I stopped using it entirely. It's always bugged me that because we write programs in VFP, we have these huge installer files. In other langauges, they have tiny installers and they just assume you have the runtimes installed.
What I've done instead is create a simple "Hello World" application in VFP, then I created an Installer for that simple program. The end product is a small Runtime installer with a built in test.
Once a client has installed the dummy program, the test program verifies that the installation worked.
From that point on, any VFP programs can simply be copied over or installed with a simple batch file. Or, if you like to use InstallShield, you can create installations for your applications that are much smaller, because the runtime is separate.