Setup cannot find OneNote.en-us\OnoteLR.cab

I have successfully installed Windows Vista Ultimate and Office 2007 Ultimate
on my desktop computer.

When I attempted to install Office 2007 Ultimate using the same disks on my
laptop running XP and again when I reformatted the harddrive and installed it
on top of Vista, both times it presented the following error, "Setup cannot
find OneNote.en-us\OnoteLR.cab. Browse to a valid installation source, and
then click OK." Of course that path and file is exactly where it is
attempting to find it but somehow is not successfully recognizing it.

Any thoughts?

Two spring to mind
1) copy the contents of the disk to the hard drive, and if that works run
setup from there and see what happens

2) This is a newsgroup for Windows Vista support. If this issue happened in
XP and Vista then whatever is wrong is either something mundane like a badly
burned disk and a sensitive drive, or a bug in the Office install. My first
point should help to identify if it's the former and if it's the latter
you'll get much better help by asking in an Office newsgroup.

follow both considerations.

Check sum of OnoteLR.cab
3ff974ec16906b1c86c9b79120ef437a OnoteLR.cab

Verify it['DigestIT' (http://tinyurl.com/6yg5e3)]. If the value doesn't
match re-download the file.

I dont understand the above note or how to fix the same issue on new PC which i have bought MS Office with , in layman terms how can i fix the issue?

I do not know if you solved the problem, i got the same problem.
That's what I did:-

I have downloaded Office enterprise's trial version from Microsoft's website below is the link:-
http://www.microsoft.com/downloads/d...displaylang=en

And used my own office key to activate that and works fine for me.

Hope that will help.