Microsoft Office is one of the most, if not the most, virtualized applications with SWV. Because of this we've done a lot of extensive testing which have resulted into several different articles here on connect.
Virtualizing Microsoft Office: a Handy Collection of Tips
This first one is a little outdated but still contains valuable information on resolving short file name conflicts that arise with Microsoft Office when it's virtualized and how to run multiple versions of Office at the same time.
Capturing Office on Windows 7
This article explains how to get office 2007 and 2010 to run on Windows 7 when virtualized and avoid repairs caused by missing Visual C runtimes.
Using SWV's Isolation Rules to get around Office 2003 & 2007 MSI Repairs
This post covers how to get around repairs caused by switching between two different versions of Office.
Other General Suggestions:
It's recommended that you set up exclude entries for Office, either by location or file type, if using file types then it's recommended to use Layer Exclude Finder to automatically generate the excludes.
If there's any more content about office here on Connect that's no listed in this post please add it to the comments.