These steps are based on Office 2010, but should be the same or similar for Office 2007:
Go into the "Add or Remove programs" ("Programs and features" in Windows Vista/7), select Microsoft Office 2007 from the list and click "Change". Select the "Add or remove features" option and click Continue. Click on "Outlook" and select "Not available" and click "Continue". This will remove Outlook.
I would strongly recommend not installing CD 2! In fact, I often uninstall the Outlook Business Contact manager for people as it is a real resource hog, especially on older PCs and laptops. It's a rather bizarre way of fixing a sluggish HDD-trashing Outlook, but works.