I think that all the above was supposed to happen. Errors and all.
"why would the other programs in the same install folder on the same network drive install without joining the domain but office wouldnt?"
Because that's how the Office installer works. Sorry if this did not answer your question but Office and a few other apps work like this. It was why I always carried my Office CDs with my on travel. Just in case. Soon I learned to put the install files on the local so I didn't have to carry the CDs.