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In Office 2003 there was a cache remover utility which is not present in Office 2007. The same is also not available in CD/DVD of Office. I have to delete the MSOCache manually. The same sometime gives error while removal. The message is quiet common saying that it is not able to locate the source. Is this a serious bug or can be ignored.
You can get rid of MSOCache folder. And if you anyhow try to delete the same and I sure that you are going to land on various errors. The only way then to fix the problem is running Office 2007 repair setup. And that will restore MSOCache folder back again. So it better if you avoid to get rid of it. It is not going to cause any major issue in your system.
I do not find mso caching proper. I had gone through some documentation on the same which said about working with mso caching. You might be aware about AIP. This is office feature that is quiet better for software installation.