(updated with screen shot)
I was happy to see that sp1 was available for Office 2007, as typically office patches are tested well. So far I’ve been very unhappy with the stability of Outlook 2007 after sp1. I constantly have “painting errors” where outlook’s task bar on the 
bottom of the screen is shown on top of my quick launch bar. I move my mouse over it and the quick-launch icons are painted properly, however, whenever this happens I am no longer able to pull up the outlook window. Vista shows the animation of minimize & restore, but no window is ever shown. The only way to recover is to right-click on the task-bar and select close. It happens 1+ times a day, which makes it incredibly annoying. Prior to sp1 this never happened. I’ve seen two other problems, but they happened only once each. I found another article talking about another known problem with no fix: http://techlogg.com/content/view/468/
I had not heard of something so drastic. I’d do a checkdsk /f on your hard drive to see if you have some corruption. Did reinstalling office & sp1 fix the problem?
I did figure out if I remove my IMAP account from the send/receive timer in Office, it’s stable again.
I installed SP1 and it causes a general Explorer.exe crash whenever I tried to view windows update applet or event viewer. I’m sure it messed up several other applets too. I had to uninstall office 2k7 (the uninstaller won’t let you remove SP1 individually) in order to fix the problem.
Just letting you know. You are not alone. I have found no mention of this error anywhere else. But I must admit I’m glad I’m not the only one.