I had exactly the same problem as you. (See my post on 10-9-2006.)
Well, I solved the problem myself by uninstalling and then re-installing
Office 2003. This turned out easier than I thought it would be.
I first used control panel to remove Office 2003 and did a fresh
installation of Office from the copy of install disk I have on my hard drive.
(I could have used the original disk, but chose to use the copy so future
updates will not require me to mount the disk.)
I then ran Windows update which updated Office with SP 2. After rebooting,
I ran it again and it installed the updates perfectly.
I then rebooted again, put shortcuts for Outlook, Word and Excel on my
desktop, and found that everything was perfect. My calendar, task list, and
prior file references were in place for all programs.
I recommend this procedure and it turned out to be the simplest and least
time consuming in the long run. (I have cable internet so download time is
minimal.)
Hope this helps.