Hi,
You can check this kb, which describes the issue you met with:
http://support.microsoft.com/kb/924622
Cause:
This issue occurs when a retail edition, a trial edition, a pre-installed edition (PIPC), or an OEM edition of a 2007 Office program or suite is installed on a Terminal Server computer. Terminal Server does not support the installation of these editions
of 2007 Office programs or suites.
Resolution:
To resolve this issue, remove these editions of the 2007 Office suite or program from the Terminal Server computer. Then, install an edition that uses a Volume License Key with the 2007 Office suite or a program that does not require License Activation.
I see you own the VL, but you also need use the Volume Licese version Office to install.
Sincerely,
Max Meng
Forum Support
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answers if they help and unmark them if they provide no help.