Office 2007 SP1 - unable to install

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I'm getting errors in Event Log:

When installing via Microsoft Update:

Product: Microsoft Office Enterprise 2007 - Update '2007 Microsoft Office Suite Service Pack 1 (SP1)' could not be installed. Error code 1603. Additional information is available in the log file e:\tmp\MSI963d8.LOG.

Additionally, MU interface displays error 78F (???)

When I'm trying to install manually from extracted MSP:

Product: Microsoft Office Enterprise 2007 - Error 1935.During installation component assembly {46174A62-FAFE-4BD6-9662-F9A9F588F034} error occured. HRESULT: 0x80131047. Assembly inteface: IAssemblyCacheItem, function: Commit, assembly name: Microsoft.Office.InfoPath.Client.Internal.Host,fileVersion="12.0.6215.1000",version="12.0.0.0000000",culture="neutral",publicKeyToken="71E9BCE111E9429C",processorArchitecture="MSIL"

I had to translate this error, it might not be 100% accurate.

I saw some solution about reinstaling or repairing NET Framework, but solution is rather for XP, at least installing Net 1.1 doesn't change anything.
I enabled logging, but I'm getting tons of junk in log files and nothing conclusive.

I'm using Vista Ultimate and Office 2007 Enterprise, also Project 2007 and Visio 2007 installed.

Thanks for any ideas.
Chris

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