Guys,
This has worked for me and a few others that i know of as well. Not sure why it matters, but it has something to do with the disk that is selected as your classic start up disk. Go to disk utility and unmount whatever drive or partition you have selected as your classic drive, and office should work fine. Strange bug, but it does seem to be the answer that we are all looking for.
djeans
ps i would like to be able to say that i was the one that figured this one out, but i actually found the answer on another message board.