OK...
The updater probably needs to have Office correctly installed in the Applications folder.
Run the Remove Office app.
You may need to install Office again to be able to run the Remove Office app.
Do not try to run or update Office yet.
Once Office is uninstalled, using the Remove Office app - reinstall Office. I would suggest the installer, and not copying the MS Office folder.
The first updater that you need to install is that Autoupdate for Office 2004. Again, don't try to use any Office apps until you complete the updates. Let the Autoupdate app sort out which updates are needed. You'll run through all 6 updates, one at a time.

Updates
 

Hi,

Follow DeltaMac's concise instructions, assuming that you have previously repaired the permissions.

Google Maps says I am 50 miles from Ingatestone UK.

Regards,

Nick

I have followed all the instructions, and still doesn't work. I'm giving up, I'll just resort to appleworks. Thanks all for your help, I really appreciate it.
Paul

One last try...
 

Hi,

Before you give up, open Console and select to view all messages. Now try the Auto updater installer and see if anything relevant comes up in the Console messages. Try Word too, and see what Console says.

Regards,

Nick

I did.......

There were several steps there, and for the benefit of others who may see this thread, it would be good to know what worked, and what didn't... instead of the rather-generic "... doesn't work."
Could the Remove Office app run?
Could the Office installer complete (which would normally add the various apps icons to your Dock?)
Could you install the Autoupdate app?

When you checked the console, was there some relevant results there that you can share (more than 'I did.....') :D

ok, I trashed all Microsoft Office 2004 files, just kept the dmg of the updates.
Reinstalled it again, succesful, congratulations message!
looked for the install, no where to be found, not on my computer, no files, nowhere. so in frustration I give up...maybe I'll buy a 2008 version.

Genuine installer Disk ?
 

Hi,

I assume that you are using a genuine MS installer disk with a hologram label, and not a "dodgy" copy or a fake with a dummy installer which is actually installing mallware ? It all seems a bit strange !

Regards,

Nick

Yes, I have used it on a couple of installations since 2004

Nick, you echoed my thoughts....
Unless your hard drive directory is really messed up - the alternate "drag the MS Office 2004 folder to your Applications folder" copies that folder, and all MS apps and support files to your Applications folder - and the folder doesn't just disappear - it copies to the location that you choose (assuming that you own the folder, and have permission to write to that folder. That's why I asked if something else that you choose, would actually copy to the Applications folder, and you didn't say if you tried that.
I think the bottom line here is:
Assuming that you have that 'Genuine MS installer', what else is going on that is not related to Microsoft, and perhaps prevents you from installing ANYTHING properly?

Run Smart Utility http://www.volitans-software.com/smart_utility.php to verify drive. It's free to use for 30 days.

Run Repair Permissions and Repair Disk while booted from your OSX Install CD.