The update for Office to 12.0.1 is not available through the AutoUpdate at this time. Currently, the only place to get it is from MacTopia.
Previously, the Microsoft AutoUpdate (MAU) was located in the root Application folder. The Office 2008 MAU is now hidden away.
/Library/Application Support/Microsoft/MAU2.0
If you still have Office 2004 installed, you will still see the Microsoft AutoUpdate (MAU) in the root Application folder. Now you start to see where confusion comes into play. Two versions. Two locations.
If you plan on keeping both versions of Office installed, you will need both MAU 1.1.2 for Office 2004 and MAU 2.1.1 for Office 2008. Neither will be able to see the other's updates.
The Office 2008 MAU should be version 2.1.1 to receive any future notices about updates for Office 2008.

Comments (2)
But it does not work!
Still get the unable to install this update even with MAU 2.1.1 installed!
What next?????
You can visit this page and try some of the solutions offered, but it might be quicker to just do a re-install.
Install/Update Errors
Steps to re-install Office