I was strugeling arround with all these small files being copied over the network to all PC's when installing Office 2007, and lot's off the time the installation failed.
But here is a one way to fix that:
The first part is the same as always, run "setup /admin" to create a msp file and call this "office2007.msp" or something.
Make a SFX file (office2007.exe) with Winrar of ALL ofifice files, include the MSP file in it. Make sure that you "hide all feedback" (Advanced options) and make the extraction path c:\temp (or somewhere else you would like it).
Make a batch file that is something like this:
:Extracting "Office2007.exe" IF NOT "%ERRORLEVEL%"=="0" EXIT /B %ERRORLEVEL%
:Installing "c:\temp\setup.exe" /adminfile "c:\temp\office2007.msp" IF NOT "%ERRORLEVEL%"=="0" EXIT /B %ERRORLEVEL%
and name it whatever you want to.
Make a batch distribution package and include the office2007.exe archive as an additional file.