A dll file called fp4autl.dll was missing in the location :
c:\program files\common files\microsoft shared\web server extensions\40\bin
so you need to get it and place it in above location.
you can get the required dll file (fp4autl.dll) in following ways..
1. Download form any of these links :-
Or
2. Check out your original XP CD. It may be in the location :- I386\FP40EXT.CAB
Or
3. Get the file from some other computer.........person with office 2007 already installed will be having it.
After you have got the file copy it and paste it to this location :-
C:\Program Files\Common Files\Microsoft Shared\web server extensions\40\bin
Source of help was the techarena forums at :-
http://forums.techarena.in/office-setup/627360.htm
thank you very much.
comments will be highly appreciated