most people said this problem can be fixed by one of these methods:
a) copy the Office CD onto the PC and replace OSETUP.dll from another Office product CD in the files you just put on the PC
b) copy the disc into a share on the network and install it on the target PC using the network share instead of the optical drive
c) check the Regional Options match your location, and if they are right then make sure your DVD region matches the region specified in the Control Panel.
In my case I found that none of these actually fixed the problem, they only provided clues to the real issue. This error is due to the disc not being read correctly. Yes you can see the files on the disc just like you would expect, but they are not being transferred properly for some reason, and Windows is unaware of the problem and you therefore are also unaware of any problem until you receive this strange OSETUP.dll problem.
The solution I found is to put the disc into another PC on your network, then copy the contents of the disc to either a network share available to the target PC, or directly to the target PC, then go to the PC you want to install onto (the target) and run setup.exe again from the network share, or other place you copied the files to.
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