I got you. The reason I ask is I didn't want to risk your email. But if you have it setup elsewhere you're fine.
Please read: You should ONLY click the Accept button once your issue is resolved. If the first answer does not work, just REPLY to me and we will continue.
Understand, this is full blown corruption of the Office suite. I did some digging to confirm but I've ran across it before. The only safe resolution to the issue is a complete removal (more difficult than it sounds) and fresh install. Installing it over the previous one (while successful) was probably what did it, messing up the activation check during the SP1 upgrade (and yes, not reversible).
Now, a couple things to note, previously when I looked over this error a few months back, it was a virus scanner that caused it to begin with during the update. It had locked a file needed. So be sure you keep Norton uninstall while doing the removal.
However, before we do the uninstall/reinstall. I'd like you to try a system restore prior to the update of service pack 1. Go to start, all programs, accessories, system tools System Restore
. Choose a date prior to the update, run it, and restart when prompted. See if Functionality is restored.
If not, continue.
We'll start simple and attempt a standard uninstall. If it doesn't cleanly uninstall or install we'll get a bit more hands on.
Go to start, in the searchbox type programs and features
and hit enter. You'll see Office products listed there. Remove all traces of it. All traces of office, not just 2007 if more are listed.
Next, restart your computer.
Now, do a complete clean install of Office on next boot, and let me know if the issue is resolved. If not, just REPLY and provide as much detail as possible.*IMPORTANT
removing Office will tear out Outlook as well. So if your mail is setup through it, the account will be removed. The EMAIL however, will remain intact.