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If the application uses runtime packages, those package files need to be distributed with the application. InstallShield Express handles the installation of package files the same as DLLs, copying the files and making necessary entries in the Windows registry.
Embarcadero recommends installing the runtime package files supplied by Embarcadero in the Windows\System directory. This serves as a common location so that multiple applications would have access to a single instance of the files. For packages you created, it is recommended that you install them in the same directory as the application. Only the .bpl files need to be distributed.
If you are distributing packages to other developers, supply the .bpl and .dcp files.