No, Microsoft Entourage is included in the Office for Mac suite and is the OS X compatible mail client, whose equivalent is Microsoft Outlook in the Windows world. General opinion, is that Outlook is a more robust, less buggy client than Entourage is. See http://blog.gingergeek.com for Entourage tips and tricks.
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Yes, Microsoft Office 2007 is compatible with Windows XP. It may require service pack 3 to be installed.
To get a CD key for Office 2007, you can try Microprokey .com which is a website that specializes in CD keys for various versions of Office.
Yes. It should be obvious, as Windows Vista had not been released at the time, and Office XP had been released shortly before.
Yes, you need Windows XP with Service Pack 2 or higher to run Microsoft Office 2007.