@Faiz Faizzy
As support for Office 2007 has been ended on October 10, 2017, Microsoft no longer provides technical support for issues.
I personally suggest you copy the installation content from CD to the local disk and launch the installation from there to check this issue.
Besides, if there are not other Office 2007 applications on your computer, here is a similar thread "setup cannot find PowerPoint.en-us\PowerPointMUI.msi", you may follow the troubleshoot steps replied by ocoman.
Please note, before deleting registry key, you need to back it up first. The same for deleting "Office 12" forlder, please remember to back it up first.
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