Our app added functionality to allow users to import certain information from an excel spreadsheet (all users will have Office 2007 already).
The development machine
Make sure the Microsoft.Office.Interop.Excel assembly is checked-in with the source code and the VS project is referencing it from the source tree and not from GAC.
After that is done, surely you do not need MS Office to be installed on the build machine, but you would need it for the application to run.