Microsoft Office 2011 for Mac creates a new directory called “Microsoft User Data” in your Documents Folder when you install the software. Deleting the directory does not go, as it gets recreated the next time you use Office. However, it can be relocated to a specific directory where Office will be able to find it, and not need to recreate it.
Simply move the Microsoft User Data directory to /Users/<YOURUSERNAME>/Library/Preferences.
This information was gathered from the comments left on k3yak.com