The file system, UDF vs. NTFS has nothing to do with your error, either the files in the ISO are corrupt or Daemon tools is not parsing the files correctly from the ISO. I would suggest making it easy on yourself and burning a Microsoft Office DVD from the ISO.
They all have a readme file with the message 'This disc contains a 'UDF' file system and requires an operating system that supports the ISO-13346 'UDF' file system specification.' I know the discs are good, as I've used them on my older machine, and I can still use them on other Win7 machines I've tested.

CyberLink UDF Reader is distributed free of charge. The contents of the download are original and were not modified in any way. The download version of CyberLink UDF Reader is 5.0. The software is periodically scanned by our antivirus system. We also encourage you to check the files with your own antivirus before launching the installation.

A reader of WindowsVJ recently faced a problem while extracting Windows 7 ISO so that he can upgrade from RC to RTM without much pain. When he tried to extract it, only one txt file get extracted saying 'This disc contains a 'UDF' file system and requires an operating system that supports the ISO-13346 'UDF' file system specification.'The problem came because he was using an old version of Data Extraction Software.Which solved easily after up gradation of software.

Problem Summary :

From here.Step 12: As you can see, there’s no recovery image in this folder. Pick your OTA file, recovery, boot, etc. https://newhard.amebaownd.com/posts/15937936.

Problem: This disc contains a 'UDF' file system and requires an operating system that supports the ISO-13346 'UDF' file system specification.

Cause: Incompatibility of Data Extractor software (WinRar the one i was using was 3.60)

Solution: Upgrading WinRar 3.9 solved this problem.

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You may upgrade your Data Extraction Software from, Download : WinRAR x86 (32 bit) 3.90

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Iso-13346 Udf File System Download

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