Bill, you were very smart to copy all the "setup files" onto your hard drive -- it sure makes it easier to add/modify in your Office setup.
As far as moving those files to your wife's laptop, I don't think it matters much how you do it. I've run into this problem myself, and just copied ALL the files (not bothering to burn it as ISO). MS Office should setup just fine.
Again, make sure you copy ALL the files. For that folder (where you stored these files), make sure you check the option to "show hidden files" in Windows Explorer. I would probably burn them to a DVD, instead of multiple CD's, just so you have it handy for future use. CD's would work though, if it's easier for you.
P.S. In the past, Microsoft has been very good to me. As a registered user, with the CD Key, they've mailed me replacement disks for the cost of shipping & handling. That option might be worth trying.