Microsoft has made a change in their licensing enforcement with the new release of the 2007 Microsoft Office system. In the past any copy of Office 2003 could be installed on a TS server for publishing, but that is no longer universally true.
Going forward, Retail, OEM, and trail versions of Office 2007 will not allow server installation, and will result in the following error:
This copy of Microsoft Office Word cannot be used on Terminal Server. Please contact your local authorized Microsoft retailer for more information.
To correct the problem, you must install a Volume License version of Microsoft Office 2007, or the Enterprise or Ultimate versions (which are only sold as VL).
More info can be found here: http://support.microsoft.com/default.aspx/kb/925098
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