About installing, licensing, and distributing Office Web Components
Microsoft Office Web Components are installed with Microsoft Office 2003 and Microsoft Office applications, or they can be installed separately from an installation point provided by the Web page designer.
When you distribute a Web page that uses components, users who do not have the components installed will be prompted to install the components, provided the Web page designer configures the components to do so. The Web page designer must also provide an installation point for the components and a pointer to that location on the component installation page. For more information, see the Microsoft Office 2003 Resource Kit.
Once the Office Web Components are installed, users who have access to an Office 2003 license will be able to interact with and make changes to the components. Users without licenses will be able to view and print the components and the data in them, but they cannot interact with or make changes to them.
Details on licensing and functionality
Office 2003 installed on computer Users have full functionality and interactivity with components, including run-time and design-time capabilities.
Office 2003 application installed on computer Users can interact with the component in design mode in that application only (not in the browser or in other applications).
Office 2003 site license (user doesn't have Office 2003 installed on computer, but user's organization has an enterprise or site license agreement) Users have full functionality and interactivity with components, including run-time and design-time capabilities. However, the Web page designer must provide a location from which components can be downloaded, and must reference the site license in a license package file (.lpk) that is associated with one or more Web pages. You use the License Package Authoring Tool to create an appropriate license file for pages. For more information, see MSDN Online.
No Office 2003, Office 2003 applications, or site licenses Users can view and print the components in view-only mode, but they cannot interact with the components or use the design capabilities.