You receive an “Error 1706. Setup cannot find the required files,” error message when you run Office XP Setup on a Windows 2000 or Windows NT 4.0 compute

When you run Microsoft Office XP Setup on a computer that is running either Microsoft Windows 2000 or Microsoft Windows NT 4.0, and you are prompted to insert your Microsoft Office XP compact disc (CD-ROM), you may receive the following error messages (in order): NOTE: On Windows NT 4.0, the System Files Update runs first, before Office XP Setup begins.

This problem can occur when all of the following conditions are true:

• Your computer has either Microsoft Windows 2000 or Microsoft Windows NT 4.0 installed.
• You attempt to use a feature that is not yet installed on your computer, but that is set to be installed on first use.
  
  -or-
  
  You run Microsoft Office XP Setup and choose to either repair (Repair errors in my Office installation) or reinstall Microsoft Office XP.
• When Microsoft Office XP Setup runs, the incorrect CD-ROM is in your computer's CD-ROM drive or DVD-ROM drive. For example, if you are running Microsoft Office XP CD1 Setup, CD2 is in your drive.
• When you are prompted to insert the correct CD-ROM, you remove the incorrect CD-ROM, insert the correct CD-ROM, and then click OK.
• Version 1.1 of the Microsoft Windows Installer is installed on your computer.

This problem can also occur if you attempt to use clip art that is stored on Microsoft Office XP CD2, when CD2 is not in your CD-ROM drive or DVD-ROM drive.

Specifically, the problem occurs because the Windows Installer continues to use cached CD-ROM information from the incorrect CD-ROM. As a result, the Windows Installer still assumes that the incorrect CD-ROM is in your CD-ROM drive or DVD-ROM drive, and Setup fails.

NOTE: This problem does not occur on computers that are running either Microsoft Windows 98 or Microsoft Windows Millennium Edition (Me).

To resolve this problem, use one of the following methods.

Method 1

Obtain the latest version of the Windows Installer, version 2.0. To download the latest version, browse to the following Microsoft Web site:

Method 2

1. Close all of the error messages described in the "Symptoms" section of this article.
2. Leave the correct Microsoft Office XP CD-ROM in your computer's CD-ROM drive or DVD-ROM drive.
3. Start Microsoft Office XP Setup by doing one of the following:
   • Use the "install on first use" component that you previously attempted to use.
   • Run Microsoft Office XP Setup from the Add/Remove Programs icon in Control Panel.
   • Attempt to use the clip art that you previously attempted to use.

If the correct CD-ROM is in the CD-ROM drive or DVD-ROM drive when the Windows Installer starts running, the problem described in the "Symptoms" section does not occur.

Microsoft has confirmed that this is a problem in the Microsoft products that are listed at the beginning of this article.