Click on window button and on run. Type Regedit + OK
Find HKEY_LOCAL_MACHINE -> Software -> Microsoft -> Office -> 11.0 -> Delivery
You will see a 90000409-6000-11D3-8CFE-0150048383C9
On the right pane, click right on CDCache.
Set the value to 0.
I used the Repair function in Picture Manager and the app seems to work fine now.
As for Outlook, I removed the 2 recent installed updates for Outlook 2003. I then used the Office 2010 to do a Repair as per the MS faq. Problem missing sku011.cab still persists with regedit value set to 2 and value set to 0 switches to missing the PRO11.MSI.