As you know, Office 2007 SP1 was released yesterday to Microsoft Update, and to WSUS as part of the Tues, Dec 11th release.
As planned, Office 2007 SP1 was not pushed via Automatic Updates. There has been some confusion where Windows Vista customers are seeing Office 2007 SP1 listed as available with an option to install in their Windows Update control panel applet.
Technet: Office 2007 SP1 Update Availability
Error message when you try to upgrade 2007 Office programs, Expression Web or Windows SharePoint Services 3.0 to the Service Pack 1 level.
SYMPTOMS
You try to upgrade 2007 Office programs, Expression Web or Windows SharePoint Services 3.0 to the Service Pack 1 level on a computer that has insufficient free disk space on the Windows system drive. In this scenario, the upgrade fails, and you receive the following error message: The installation of this package failed.
Please see KB: 943589
