We run a VDI environment in which user profiles are stored on the D: drive. If I upgrade our "master" image from Office 2007 to 2010 (which will only change C:) and redeploy the VMs, will there be (compatibility) problems with users' profiles & their Office settings, etc?
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Without doing any research whatsoever, I can almost guarantee you will have no problems migrating profiles from 2007 to 2010. That has to be the most common use-case Microsoft would have tested when releasing the new product.
If for some reason you were back-revving from 2010 to 2007, that's where you might encounter difficulty depending on what 2010 actually does to the Office settings.

Ryan Bolger
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So the installer wouldn't touch/upgrade any of the profiles on the system? – jftuga Mar 28 '11 at 19:37
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The only profile the installer might touch is the profile for whichever account the installer is running under. – Ryan Bolger Mar 28 '11 at 19:40
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Depending on config options the All Users profile could also be affected. – squillman Mar 28 '11 at 19:52