The scenario you describe is not possible becaue you have to pass in a URL for install location--you cannot pass in c:\temp\install as you said.
Just for clarification let me just say what the three parameters define and the form of each parameter:
1) The publish location defines where you want VS to put the files. This can be a local path, a URL, or a UNC path.
2) The installation URL has to be a URL or a UNC path (i.e something like "\\mymachine\deploypath" or "http://mymachine/deployment/").
3) The update location also has to be either a URL or a UNC path.
Thanks,
Sayed