Slipstreaming office 2007 service pack

First download the service pack from microsoft. Drop to command prompt, change to the appropriate directory with the downloaded file. I renamed the file to sp2.exe to simplify things.
Run the sp2.exe with the extract command;
sp2.exe /extract:d:\downloads\sp2

copy the extracted files to your office 2007 install source, into the Updates folder. When you install Office 2007 it will automagically include the sp2 udpates.

Nice!