During the beta phase of Office 2007 (or 12 as it was called at that time), the Office team distributed their last beta pieces of code as an update. Reason behind it, was to test their new update and slipstream method. All Office applications (including servers) of the 2007 wave have a new way to slipstream any update or service pack. If you take a look at the Office 2007 installation disc, you will find a folder called "Updates". Any updates found in that folder, will be applied during installation. But that’s not all. First you will need to extract the update. Here are the detailed steps:

  1. Copy your Office disc contents to a folder on your hard drive. In my case is C:Office12
  2. Download the updates you wish to slipstream
  3. Execute the update with the "extract" parameter, specifying the path to the "Updates" folder:

C:officeupdate.exe /extract:C:Office12Updates

As soon as extraction is complete you are done!

This technique also works with MOSS 2007 and is going to be very useful if you try to install MOSS on Server 2008.