G'Day Eric,
The Language Tools, strictly speaking, are part of Windows Xp in the sense
that their use is not confined to Office.
I believe they were first distributed with Office Xp, and then with Office 2003.
If they are already installed on your system, then:
1. Point at the Taskbar, Right-Click and select Toolbars>Language bar.
2. Point at the Language bar (RH end of Taskbar), Right-Click and
choose 'Restore the Language bar'.
Use Start>Help and Support
to get more information if you do NOT see it ('Language bar').
When the Language bar is restored (floating on screen) all the options (for
Handwriting, Dictation, Ink and Voice command) are available there - so that
Tools>Speech in Word becomes redundant.
The Language Tools (from the Language bar) seem to work perfectly with
Word 2007.
Office 2007 was designed for Windows Vista which has the Tools built in,
and does not itself include them.