Is there a problem install the CRM 3.0 Outlook Client on a PC with Office 2007 installed. If so is there a fix
There is no problem doing that, if you use the V3C client.
If you have the original media (anything that doesn't say, "V3C" on it), download it from here:
It's an ISO image of the Outlook clients, and is especially for Vista/2007, and pretty much ignore the one that came with the package, and just use the ISO for your client installations.
The document file on the download page pretty much spells it out. It's quick and easy.
Hope this helps!