I had the same problem with a client's PC, a core 2 duo with xp pro sp2
These are the steps I used to resolve it:
1) go to add/remove programs in the control panel, uninstall offic
2007, .net 3.0 (if its installed), anything to do with MSXML 4 an
MSXML 6, and anything to do with MS SQL Server.
2) Open explorer, go to tools->folder options->view tab, at the botto
of the list, uncheck use simple file sharing, (note: this option i
only available in xp pro, if you are using xp home you will have to us
the secedit command at the command prompt to carry out the next step
also adjust options so that you can see hidden files and folders an
3) navigate to "C:\documents and settings\networkservice\applicatio
4) right click on this folder, go to properties, click on th
"security" tab, click on "advanced".
5) Make sure that the user "Network Service" is included in the lis
and that it has full control available. Make sure that BOTH options a
the bottom of that window are checked (especially "Replace permissio
entries on all child objects...."). Hit apply and ok, and exit out o
6) Reinstall Office 2007, do a custom install and make sure that al
options are installed to be run directly from your computer, none o
that "installed on first use" stuff, then activate office 2007.
7) open internet explorer and go to officeupdates.microsoft.com
download and install all necessary updates for office 2007.
8) put in your office 2007 professional cd2 and install, at this poin
the installation should work perfectly, with no references to problem
with MS SQL server 2005 express.
9) go back to windows update website, which should now be able t
detect any necessary updates needed for both office and xp and instal
I have heard that MS SQL server 2005 express edition does not play wel
with AMD 64's. This of course could cause potential problems with th
second cd install, as it will not continue unless it can successfull
install and run the sql services necessary for the applications on th
Hope this helps,
Altex Computers and Electronics of San Antoni