Same Problem:
Upon Installation of Office 2007 on Windows 7 64 Bit Error 1935 with Assembly {63E949F6-03BC-5C40-A01F-C8B3B9A1E18E}. I tried almost everthing, repaired all DotNet Frameworks, Sfc /Scannnow , reinstalled all VC++ Redistributable Packages and even a Windows 7 inplace update didn't solve this problem.
But after all there was a solution:
I installed Microsoft .NET Framework SDK v2.0 (64bit)
http://download.microsoft.com/download/e/e/2/ee2042c3-20d3-4303-b67f-e9184085c58c/setup.exe
Now every thing works fine.