Yes, you can add TurboActivate (the part of LimeLM you include with your app) inside installers: http://wyday.com/limelm/help/using-turboactivate-with-inno-setup/
I am using Inno Setup as a file installer. There is no executable program being installed. I want to license protect the installation exe file. Is LimeLM suitable for this purpose? Also, I am using Paypal as the only method of payment.
Yes, you can add TurboActivate (the part of LimeLM you include with your app) inside installers: http://wyday.com/limelm/help/using-turboactivate-with-inno-setup/