"Windows installer service can not update one or more protected windows files, installation failed"
and the setup rolls back any changes. This happens because some dlls are missing in Windows XP.
1. Download fp4autl.dll and Fpencode.dll
2. Copy them to the C:\Program Files\Common Files\Microsoft Shared\web server extensions\40\bin
directory.
3. Run the Office 2007 setup once again.