OK, I am losing it finally.
According to http://support.microsoft.com/kb/947379/en-us, Communicator needs to be deployed as a Computer GPO, not a user GPO.
I have done this (well, not exactly, because I don't edit default domain policies - someone at MS should fry for that...) and the same error occurs. It publishes OK and shows up in the Add new programs, and it even installs OK, but the same error in that KB appears.
I've googled this a bunch and am not finding much help.. anyone deployed communicator 2007 via GPO successfully?