I searched everywhere for a solution to this problem. After installing, reinstalling and patching I was still not able to stop Office 2007 Outlook from launching the installation window/dialog window everytime I launched Microsoft Office 2007 Outlook. Here is what I tried:

• Downloaded Microsoft's Installer Cleanup Utility - download here - worthless
• Visited Experts-Exchange and tried several solutions click here for their solutions - worthless
• Deleted shortcuts from start menu and quick launch bar.
• And finally, logged into the computer administration and activated the Administrator account and changed the password. Which fixed it.