Haven't heard of any trouble yet, but there's always a first! Have you tried leaving the word path in the preferences blank?

[a few days later...]
Just wanted to let you know that we have upgraded our workstations containing MediaLab 2006 to include Office 2007 and everything is working fine so far. Thanks so much again for your continued support . .
Just curious.. what did you do to make MediaLab and Office 2007 work together? I recall at the beginning, you were having trouble, no?