Customers using Windows Server 2008 R2, and customers using Windows Server 2008 with Terminal Services have reported experiencing crashes with Office applications after installing KB977724.
There is a hotfix available that addresses these crashes. Please navigate to the following URL to obtain the update which fixes the problem. It is not necessary to uninstall KB977724 before installing this hotfix. An update that incorporates these fixes will be more broadly available through Microsoft Update (MU) in the near future.
KB977724 is a non-security update that allows support of .NET 4.0 components within the Office 2007 system. This was published in a limited release through the Download Center in February, and more broadly through MU in March. The crash symptoms are NOT caused by the .NET 4.0 compatibility changes. KB980210 supersedes
KB972224 KB977724. (editors note: the original KB number was incorrectly listed)