Windows installer keeps asking for SKU012.CAB?

You and a dozen others, apparently it is a file that is needed for installation. Sorry I can't help you, but I googled it and got the same response you got, no one can find SKU012.CAB. I think I will ask my son when he comes home he is in computer science, so may know, then we will all know... right !

This solution sounds good to me:
officeupdate How can a find sku012.cab file inside of office cd? (http://www.eggheadcafe.com/ng/microsoft.public.officeupdate/post20784771.asp)

Well I hate to say it out loud but often these issues stem from someone having pirated software and a Windows Update caused the CD to be needed. That's when the user sees this problem. The solution in that links was to remove the corporate version and install the consumer version which should be the CD that the person has (or hasn't ;))