I redownloaded the update file. It appears to have had the same problem.
The following properties have been set:
Property: [AdminUser] = true {boolean}
Property: [ProcessorArchitecture] = Intel {string}
Property: [VersionNT] = 6.0.1 {version}
Running checks for package 'Office 2007 update (KB 941637)', phase BuildList
Reading value 'mso.dll' of registry key 'HKLM\SOFTWARE\Microsoft\Office\12.0\Common\FilesPaths'
Read string value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL'
Setting value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}' for property 'Office2007Installed'
Reading value 'mso.dll' of registry key 'HKLM\SOFTWARE\Microsoft\Office\12.0\Common\FilesPaths'
Read string value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL'
Running check with folder 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\' and file 'MSO.DLL'
Attempting to find file 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL'
File version is '12.0.6300.5000'
Setting value '12.0.6300.5000 {version}' for property 'MsoDllFileVersion'
The following properties have been set for package 'Office 2007 update (KB 941637)':
Property: [MsoDllFileVersion] = 12.0.6300.5000 {version}
Property: [Office2007Installed] = C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}
Running checks for command 'OfficeKB941637\office-kb941637-fullfile-x86-glb.exe'
Result of running operator 'VersionLessThan' on property 'VersionNT' and value '6.0.0': false
Result of running operator 'VersionGreaterThanOrEqualTo' on property 'VersionNT' and value '7.0.0': false
Result of running operator 'ValueNotExists' on property 'Office2007Installed': false
Result of running operator 'VersionEqualTo' on property 'MsoDllFileVersion' and value '12.0.6049.5000': false
Result of running operator 'VersionGreaterThanOrEqualTo' on property 'MsoDllFileVersion' and value '12.0.6300.1000': true
Result of checks for command 'OfficeKB941637\office-kb941637-fullfile-x86-glb.exe' is 'Bypass'
'Office 2007 update (KB 941637)' RunCheck result: No Install Needed
Running checks for package 'Windows Vista update (KB 933860)', phase BuildList
Reading value 'mso.dll' of registry key 'HKLM\SOFTWARE\Microsoft\Office\12.0\Common\FilesPaths'
Read string value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL'
Setting value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}' for property 'Office2007Installed'
Running external check with command 'C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\VistaKB933860\HotFixCheck.exe' and parameters 'KB933860 NPC'
Process exited with code 0
Setting value '0 {int}' for property 'HotFixInstalled'
The following properties have been set for package 'Windows Vista update (KB 933860)':
Property: [HotFixInstalled] = 0 {int}
Property: [Office2007Installed] = C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}
Running checks for command 'VistaKB933860\Windows6.0-KB933860-x86.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'Intel': false
Result of running operator 'VersionNotEqualTo' on property 'VersionNT' and value '6.0.0': true
Result of checks for command 'VistaKB933860\Windows6.0-KB933860-x86.msu' is 'Bypass'
Running checks for command 'VistaKB933860\Windows6.0-KB933860-x64.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'AMD64': true
Result of checks for command 'VistaKB933860\Windows6.0-KB933860-x64.msu' is 'Bypass'
'Windows Vista update (KB 933860)' RunCheck result: No Install Needed
Running checks for package 'Windows Vista update (KB 945145)', phase BuildList
Reading value 'mso.dll' of registry key 'HKLM\SOFTWARE\Microsoft\Office\12.0\Common\FilesPaths'
Read string value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL'
Setting value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}' for property 'Office2007Installed'
Running external check with command 'C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\VistaKB945145\HotFixCheck.exe' and parameters 'KB945145'
Process exited with code 0
Setting value '0 {int}' for property 'HotFixInstalled'
The following properties have been set for package 'Windows Vista update (KB 945145)':
Property: [HotFixInstalled] = 0 {int}
Property: [Office2007Installed] = C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}
Running checks for command 'VistaKB945145\Windows6.0-KB945145-x86.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'Intel': false
Result of running operator 'VersionNotEqualTo' on property 'VersionNT' and value '6.0.0': true
Result of checks for command 'VistaKB945145\Windows6.0-KB945145-x86.msu' is 'Bypass'
Running checks for command 'VistaKB945145\Windows6.0-KB945145-x64.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'AMD64': true
Result of checks for command 'VistaKB945145\Windows6.0-KB945145-x64.msu' is 'Bypass'
'Windows Vista update (KB 945145)' RunCheck result: No Install Needed
Running checks for package 'Windows Vista update (KB 945435)', phase BuildList
Reading value 'mso.dll' of registry key 'HKLM\SOFTWARE\Microsoft\Office\12.0\Common\FilesPaths'
Read string value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL'
Setting value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}' for property 'Office2007Installed'
Running external check with command 'C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\VistaKB945435\HotFixCheck.exe' and parameters 'KB945435'
Process exited with code 0
Setting value '0 {int}' for property 'HotFixInstalled'
The following properties have been set for package 'Windows Vista update (KB 945435)':
Property: [HotFixInstalled] = 0 {int}
Property: [Office2007Installed] = C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}
Running checks for command 'VistaKB945435\Windows6.0-KB945435-x86.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'Intel': false
Result of running operator 'VersionNotEqualTo' on property 'VersionNT' and value '6.0.0': true
Result of checks for command 'VistaKB945435\Windows6.0-KB945435-x86.msu' is 'Bypass'
Running checks for command 'VistaKB945435\Windows6.0-KB945435-x64.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'AMD64': true
Result of checks for command 'VistaKB945435\Windows6.0-KB945435-x64.msu' is 'Bypass'
'Windows Vista update (KB 945435)' RunCheck result: No Install Needed
Running checks for package 'Windows Vista update (KB 948531)', phase BuildList
Reading value 'mso.dll' of registry key 'HKLM\SOFTWARE\Microsoft\Office\12.0\Common\FilesPaths'
Read string value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL'
Setting value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}' for property 'Office2007Installed'
Running external check with command 'C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\VistaKB948531\HotFixCheck.exe' and parameters 'KB948531'
Process exited with code 1
Setting value '1 {int}' for property 'HotFixInstalled'
The following properties have been set for package 'Windows Vista update (KB 948531)':
Property: [HotFixInstalled] = 1 {int}
Property: [Office2007Installed] = C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}
Running checks for command 'VistaKB948531\Windows6.0-KB948531-x86.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'Intel': false
Result of running operator 'VersionLessThan' on property 'VersionNT' and value '6.0.0': false
Result of running operator 'VersionGreaterThanOrEqualTo' on property 'VersionNT' and value '7.0.0': false
Result of running operator 'ValueNotExists' on property 'Office2007Installed': false
Result of running operator 'ValueEqualTo' on property 'HotFixInstalled' and value '0': false
Result of checks for command 'VistaKB948531\Windows6.0-KB948531-x86.msu' is 'Install'
Running checks for command 'VistaKB948531\Windows6.0-KB948531-x64.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'AMD64': true
Result of checks for command 'VistaKB948531\Windows6.0-KB948531-x64.msu' is 'Bypass'
'Windows Vista update (KB 948531)' RunCheck result: Install Needed
Running checks for package 'Windows Vista update (KB 950759)', phase BuildList
Running external check with command 'C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\VistaKB950759\HotFixCheck.exe' and parameters 'KB950759'
Process exited with code 1
Setting value '1 {int}' for property 'HotFixInstalled'
The following properties have been set for package 'Windows Vista update (KB 950759)':
Property: [HotFixInstalled] = 1 {int}
Running checks for command 'VistaKB950759\Windows6.0-KB950759-x86.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'Intel': false
Result of running operator 'VersionLessThan' on property 'VersionNT' and value '6.0.0': false
Result of running operator 'VersionGreaterThanOrEqualTo' on property 'VersionNT' and value '7.0.0': false
Result of running operator 'ValueEqualTo' on property 'HotFixInstalled' and value '0': false
Result of checks for command 'VistaKB950759\Windows6.0-KB950759-x86.msu' is 'Install'
Running checks for command 'VistaKB950759\Windows6.0-KB950759-x64.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'AMD64': true
Result of checks for command 'VistaKB950759\Windows6.0-KB950759-x64.msu' is 'Bypass'
'Windows Vista update (KB 950759)' RunCheck result: Install Needed
Running checks for package 'Windows Live Sign-in Assistant', phase BuildList
Reading default value of registry key 'HKCR\CLSID\{9030D464-4C02-4ABF-8ECC-5164760863C6}\InprocServer32'
Unable to read registry value
Not setting value for property 'WindowsLiveLoginDllFileVersion'
The following properties have been set for package 'Windows Live Sign-in Assistant':
Running checks for command 'WindowsLiveSign-inAssistantforOLW\wllogin.msi'
Skipping ByPassIf because Property 'WindowsLiveLoginDllFileVersion' was not defined
Result of checks for command 'WindowsLiveSign-inAssistantforOLW\wllogin.msi' is 'Install'
'Windows Live Sign-in Assistant' RunCheck result: Install Needed
Installation of components 'Windows Vista update (KB 948531), Windows Vista update (KB 950759), Windows Live Sign-in Assistant' was accepted.
Copying files to temporary directory "C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\"
Downloading files to "C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\"
(6/11/2008 7:16:59 PM) Downloading 'VistaKB948531\Windows6.0-KB948531-x86.msu' from 'http://download.microsoft.com/download/c/5/b/c5bfc112-b428-496c-a816-4ac79cfef0ec/VistaKB948531/Windows6.0-KB948531-x86.msu' to 'C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\'
Download completed at 6/11/2008 7:17:00 PM
Verifying file integrity of C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\VistaKB948531\Windows6.0-KB948531-x86.msu
WinVerifyTrust returned 0
File trusted
(6/11/2008 7:17:00 PM) Downloading 'VistaKB950759\Windows6.0-KB950759-x86.msu' from 'http://go.microsoft.com/fwlink/?LinkID=120758' to 'C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\'
Download completed at 6/11/2008 7:17:14 PM
Verifying file integrity of C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\VistaKB950759\Windows6.0-KB950759-x86.msu
WinVerifyTrust returned 0
File trusted
(6/11/2008 7:17:14 PM) Downloading 'WindowsLiveSign-inAssistantforOLW\wllogin.msi' from 'http://download.microsoft.com/download/c/5/b/c5bfc112-b428-496c-a816-4ac79cfef0ec/WindowsLiveSign-inAssistantforOLW/wllogin.msi' to 'C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\'
Download completed at 6/11/2008 7:17:17 PM
Verifying file integrity of C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\WindowsLiveSign-inAssistantforOLW\wllogin.msi
WinVerifyTrust returned 0
File trusted
Running checks for package 'Windows Vista update (KB 948531)', phase BeforePackage
Reading value 'mso.dll' of registry key 'HKLM\SOFTWARE\Microsoft\Office\12.0\Common\FilesPaths'
Read string value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL'
Setting value 'C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}' for property 'Office2007Installed'
Running external check with command 'C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\VistaKB948531\HotFixCheck.exe' and parameters 'KB948531'
Process exited with code 1
Setting value '1 {int}' for property 'HotFixInstalled'
The following properties have been set for package 'Windows Vista update (KB 948531)':
Property: [HotFixInstalled] = 1 {int}
Property: [Office2007Installed] = C:\PROGRA~1\COMMON~1\MICROS~1\OFFICE12\MSO.DLL {string}
Running checks for command 'VistaKB948531\Windows6.0-KB948531-x86.msu'
Result of running operator 'ValueNotEqualTo' on property 'ProcessorArchitecture' and value 'Intel': false
Result of running operator 'VersionLessThan' on property 'VersionNT' and value '6.0.0': false
Result of running operator 'VersionGreaterThanOrEqualTo' on property 'VersionNT' and value '7.0.0': false
Result of running operator 'ValueNotExists' on property 'Office2007Installed': false
Result of running operator 'ValueEqualTo' on property 'HotFixInstalled' and value '0': false
Result of checks for command 'VistaKB948531\Windows6.0-KB948531-x86.msu' is 'Install'
'Windows Vista update (KB 948531)' RunCheck result: Install Needed
Verifying file integrity of C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\VistaKB948531\Windows6.0-KB948531-x86.msu
WinVerifyTrust returned 0
File trusted
Installing using command 'C:\Users\Kent\AppData\Local\Temp\VSD7FA3.tmp\VistaKB948531\Windows6.0-KB948531-x86.msu' and parameters '/quiet /norestart'
Process exited with code 1392
Status of package 'Windows Vista update (KB 948531)' after install is 'InstallFailed'
Status of package 'Windows Vista update (KB 950759)' after install is 'InstallNeeded'
Status of package 'Windows Live Sign-in Assistant' after install is 'InstallNeeded'