Realizing that you may have tried some of these steps already, here is my
suggestions.
Check the Win.ini
-----------------
Some memory-resident and anti-virus programs that are started through a
reference in the Win.ini file may cause errors when you install Office 97.
To disable these programs, follow these steps:
1. Click Run on the Start menu. In the Run dialog box, type "win.ini"
(without the quotation marks) and click OK. This step opens the Win.ini
file in Microsoft Notepad.
2. Locate the LOAD= and RUN= lines in the Win.ini file. Both of these lines
are located in the [windows] section, which is near the top of the file.
After locating these lines, type a semi-colon (

in front of each line.
For examples, change the following line
LOAD=
to this:
;LOAD=
3. On the File menu, click Save. On the File menu, click Exit.
You must restart the computer for these changes to take effect.
Reinstall Microsoft Office 97 Excluding Microsoft Outlook
---------------------------------------------------------
To reinstall Office 97 without Outlook, follow these steps:
1. Quit all programs.
2. On the Windows Start menu, click Run.
3. Type the following command to start Setup and create a log file
<Drive>:\Setup
where <Drive> is the drive letter you are installing from. For example,
if you are installing from a CD-ROM drive (usually drive D), type the
following:
D:\Setup
4. Proceed through the installation process and select Custom as the
installation type.
5. Click to clear the Microsoft Outlook check box. Click Continue.
Continue installing Microsoft Office 97. If the Setup program successfully
installs Office without displaying an error message, run Setup again to
install Microsoft Outlook in maintenance mode.
It is possible that the system is infected with the Klez virus.
Clean the virus from the infected system.
Notes: look for a program called WINKxxx (where xxx is random characters)
in the
Startup group or in system services to determine if system is infected with
the
Klez virus.
Here is an article that help as well:
163211 XCLN: Setup: WNetEnumCachedPasswords Could Not Be Located
http://support.microsoft.com/?id=163211