If I understand your question, it revolves around trying to use a single copy of Office 2K7 for both an XP OS and a separate Vista OS. Since each "OS" is considered (by MS) to be a unique installation, what you're attempting to do is in violation of the licensing restrictions
OK, so everyone will say -- why is this important
Because ... what you're trying to do most certainly will NOT work, and when it fails, could very likely trash all of your Office-related files
While you could try saving your data files on a third, shared partition, such that either OS could then access the files, nonetheless, the program files, system files, registry settings, and user setting will be unique to each OS instance. For example, using default settings, and using Outlook, your email files (.PST files) will be installed on the two different "C" drives. This means that if you read outlook mail in XP, save the mail, remove it from the server (in the process), then when you boot into Vista, you will not find the mail. Why? Because it's gone from the server and neither OS can see inside the "user" files of the other OS (not without a lot of security tweaking)
If you leave the mail on the server, then both OS's can see it -- because it's in a common place. Same would likely be true if you are able to save your Outlook mail files to a common, shared partition
Double-booting effectively wipes out System Restore. This has been documented ad nauseum -- so it's not a matter of debate. If you use third-party image backup and restore (and you should!), this is no problem. But if you don't, booting into either OS effectively wipes out ALL the restore points created by the other OS
When you boot into either OS, unless you go to great pains to hide the other OS, you will not only be able to see most (not all) of the contents of the other OS, even worse, you will be able to change the files as well. BUt if you do this, don't be surprised if, upon the next boot into the "other" OS, you get a forced CHKDSK reporting unrecoverable file corruption. I had that happen to me when I was first dual-booting XP and Vista and learned my lesson -- the hard way
In summary, what you're attempting to do carries high risk of data corruption, and in the worse cases, trashing one or both OS's. I would advise against it.
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