About the Error
This problem can occur while using a disk of Microsoft Office, either to repair an Office installation or to install a features set to "Installed on First Use", if all the following conditions are true: you originally installed Office from a network administrative installation. The network administrative installation is no longer available to you. You are trying to use an Office CD-ROM when you are prompted by theWindows Installer for an Office source location. You click Cancel when you are prompted to insert the CD. Because the files in an administrative installation are uncompressed, and the files on an Office CD-ROM are compressed, the Windows Installer cannot resolve the differences between the two source types.
This steps help on a code 1706 error
The resolution to this problem depends on whether you can obtain access to a network administrative installation. If the original administrative installation from which you installed Office is not available, you can use a different administrative installation for the Office source file location. To do this, follow these steps: Click Start and then click Run. In the Open box, type a command line similar to the following, and then click OK new network path\Setup.exe /fvm package name.msiwhere new network path is the full path to the alternative network administrative installation, and package nameis the name of the Windows Installer .msi package on the root of this administrative installation (for example, Proplus.msi). Click OK when the update is finished. Note After you follow these steps, the Windows Installer uses this new server location whenever it needs to reinstall, repair, or add a feature to your Office installation. If you do not have access to a network administrative installation but have more than 700 MB of free disk space on your hard disk, you can create an administrative installation on your hard disk to use as the Office source file location. Note To create an administrative installation, you must use an Enterprise edition of Office. Also This method requires a moderate amount of Knowledge. If you do not think you have the knowledge, call your Tech. Insert your Office CD-ROM. Click Start, and then click Run. In the Open box, type a command line similar to the following, and then click OK CD-ROM drive:\Setup /awhere CD-ROM is the drive letter of your CD-ROM drive. In the Administrative Installation dialog box, specify the location on your hard disk for the Office administrative installation, and then type your Product Key (CD key). Click Next. Click OK when the installation is finished. Follow the steps listed in the "Use an Alternative Network Administrative Installation" section to change the Office source file location to the administrative installation on your local hard disk.
TipFor more information, please see: How to fix Update error #1706