"Error 1311: cannot locate source file" error message when you install a 2007 or 2003 Office suite

Symptoms
When you install a 2007 Microsoft Office or Microsoft Office 2003 suite, you may receive an error message that is similar to one of the following:

Error 1311
Cannot locate source file Cabinetfile.cab

Error 1311
Source file not found Cabinetfile.cab (ie. sku112.cab)

Cause
This problem may occur when the following conditions are true:
• You are installing Microsoft Office 2003 from an installation point that is located on the network and that is accessed by multiple users.
• The installation source at this network location is contained in cabinet files.
• Microsoft Office 2003 is being installed on another computer on the network at the same time that you are trying to install Microsoft Office 2003 and the computer is using the same network installation point.
• The operating system of the other computer is the original released version of Microsoft Windows XP 

Note Microsoft Windows XP Service Pack 1 (SP-1) is not installed.
• If this problem occurs when you upgrade to a 2007 Office suite, the local installation source for the earlier version of Office could have been moved or deleted. Alternatively, the local installation source could be corrupted.
The other network computer does not release control of the installation files in a timely manner as expected. This prevents your computer from accessing those files.

Workaround
To work around this behavior, use any of the following methods:
• Create an administrative installation point for Office 2003. Cabinet files are not present in administrative installation points.
• When you receive the error message, click Retry to make the installation continue correctly.
• Upgrade the operating systems of any Windows XP client computers on the network to Windows XP Service Pack 1 (SP1). To do this, a user with the correct permissions must log on to each Windows XP client computer, click Start, point to All Programs, and then click Windows Update.
• If this problem occurs when you upgrade to a 2007 Office suite, locate the insert the installation CD for the earlier version of Office into the CD drive, and then click Retry. If this does not resolve the problem, follow these steps:
1. Cancel the 2007 Office upgrade.
2. Remove the earlier version of Office by using the Add or Remove Programs item in Control Panel.
3. Reinstall the 2007 Office suite.