There isn't a "removal" tool for Office 2003...between the uninstall and the
Windows Installer cleanup utility, that's what's available for automating
cleanup.
If your installation is stalling, then the programs aren't completely
installed (as you can see by the failure to update). That's probably what
we should focus on. At what point does it stall? Can you tell, or is it
just somewhere along the progress bar?
I would try this:
If you have data in Outlook (usually a PST file), then back it up.
Uninstall Office 2003 via the Control Panel (if it shows there).
Run the Windows Installer Cleanup Utility to remove entries related to
Office 2003
Delete (or rename) the Program Files\Microsoft Office folder if you have no
other Office programs installed
Delete (or rename) the c:\MSOCACHE folder if it exists (it's a hidden
folder)
Run a scan disk on your system to check for any disk errors
Run a defragmentation on your system
Ensure the CD is clean and works on another system (completely)
If this CD has never worked, I'd try it on another system to see if it's
your system or the CD.
Otherwise, it might be worth a call to Microsoft support, since I understand
they will handle setup issues at no charge.