If you are like me, having several computers thrown out of your house, in the middle of the street, out of frustration, because of the simple act of wisdom of trying to open a Word or Excel doc inside you Sharepoint 2007 site, welcome aboard!
After several visits to the therapist, sacrificing a duck and Googling the heck out of this issue, I am happy to share that Microsoft released a hot fix to remedy the situation at http://support.microsoft.com/default.aspx/kb/938888
If you are more interested in knowing what really was going on, well, After installing Office 2007, you must have installed another Office 2007 goodie like Sharepoint Designer 2007 or one of the nice new looking Office 2007 application add-ons that changed an important DLL in your office12 folder called OWSSUPP.DLL or as I call it "Satan.DLL". Unfortunately, the new DLL is incompatible with NAME.DLL which it has to call into.
As a matter of fact, before this patch from Microsoft, the way to hack it was to get OWSSUPP.DLL from any Office 11 installation then run RegServ32 on it (which will fail by the way) (Not really, as it registered correctly, it just felt like reporting a failure to you anyway as a punishment)
Anyway, I LOVE SHAREPOINT, IT IS CONSULTING AND TRAINING HEAVEN :)