Dear Customer,
Based on my research, this issue occurs when a retail edition, a trial edition, or an OEM edition of a 2007 Office program or suite is installed on a Terminal Server computer. Terminal Server does not support the installation of these editions of 2007 Office programs or suites.
To resolve this issue, I recommend you remove these editions of the 2007 Office suite or program from the Terminal Server computer. Then, reinstall
an Enterprise edition of the 2007 Office suite or program that does not require License Activation.
For more detailed information, please reference the following article in Microsoft Knowledge Base:
924622 Error message when you try to start a 2007 Office program within a Terminal Server client session: "This copy of Microsoft Office <Program>
cannot be used on Terminal Server"
http://support.microsoft.com/default.aspx?scid=kb;EN-US;924622
If anything is unclear or you need further assistance on this issue, please feel free to let me know. I am glad to be of assistance.
Sincerely,
Tom Zhang