Yes, that fully works.
It would have been amazing if MS Office 2007 only would run with Windows Vista that appeared in Windows 2007, without supporting XP. And there hardly existed a 64 bit version of XP.
Can i use MS office 2007 in windows xp 32 bit ?

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic