I am having a similar problem. This is what I posted over at the TechNet forums with absolutely no response.
So I loaded up a fresh install of Windows 7 32 bit and I just tried to install Office 2007 Small Business edition. I am able to load up the install process, enter the product key, prove that I have a former edition of Office, customize the install process, and then I get this error message \\\"Microsoft Office Small Business 2007 installation did not complete successfully. We are sorry for the inconvenience.\\\"
Any ideas? Surely Windows 7 works with Office 2007?
One thought . . . how many of you are using an upgrade version of Office 2007 vs. a full version. I am using an upgrade version. Could that be part of the problem?
Update - I think I found a solution.
Well at least it worked for me . . . I copied all the files from my DVD to a folder on my hard drive and I was able to successfully install it from there. While I was at it, I slipstreams SP1 as well. Here's a guide to how to do it.
Microsoft Office 2007 SP1 Installation & Slipstream Guide