Hello karn,
Welcome to the forums. Could you please be more specific about the problem or error. For example, an extract from C:\Windows\wsusofflineupdate.log would help us (please use [/code] tag).
And: Windows XP is not supported anymore by WSUS Offline Update. So maybe you're stumbling over this, when the Updater starts? I don't know if this is queried by the updater when you use an Office-only ISO.
Greetings
Gerby