"My question is, why is this happening "
Nothing new here, just so you know. This issue began almost 10 years ago with Windows NT. Microsoft has their install on demand feature designed this way.
"- do I have to install MS Office for each Account created ? "
Yes. Also, this is why many IT administrators would put the Office or other CD contents on a central install point so installs can occur without having to fetch the CD.
In closing, nothing's broken.
My OS is WinXP Pro SP1, installed with MS Office XP.
At the Account with Admin privileges under which MS Office XP is installed, the programs(Word, Excel, Powerpoint, etc) launch normally. MS Office can be accessed by the other accounts, one with admin privileges and the other one a limited account. However, when the program icon, e.g. Word is clicked, Setup begins to run to install Word, and there is an error indicating that "...what is being accessed is on a CD..." (or words to that effect)and I am asked to insert the Office CD. However, after closing/cancelling the boxes, the program launches, and I am able to use it normally. My question is, why is this happening - do I have to install MS Office for each Account created ? Thanks.