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Microsoft requires that an image of the Office installation cd's be available somewhere on your network. This is a Microsoft requirement, not an UpdateEXPERT requirement.
Shown below is the file structure of an Office 2000 Professional network "share". Other shares for other versions of Office will look similar but different.
Typically, CD based installation files are copied to a network drive.
SETUP.EXE can be run to install Office on a client. It is normal to find a SETUP program and "CAB" files (Microsoft "cabinet" files, compressed like zip files), among other things.