I went back and forth, googling my brains out for a day trying to figure out why I couldn't get document conversions working on my '07 MOSS farm. It turns out that I had to run the "Office Document Conversions Launcher Service" and the "Office Document Load Balancer Service" as the Local System account. Nothing else is good enough apparently. When restarting these services be sure to start the load balancer first, but you probably already knew that since you've been googling your brains out all day trying to find the solution to this. Here's the fun you'll find in the logs on the WFE if you're having this problem:
Requesting launcher from load balancer
Executing method on launcher
Trying to get launcher from load balancer
error code CE_OTHER from the document conversions framework in the callback handler
ScheduledItemEventReceiver:ItemUpdating for item '[page name]
Error 'CE_OTHER' when trying to convert document to page using the document conversion feature.
Failed to generate .
Converting the document to a page failed. The converter framework returned the following error: CE_OTHER
CreatePage: DocumentPagificationException when attempting to convert page: Converting the document to a page failed. The converter framework returned the following error: CE_OTHER at at Microsoft.SharePoint.Publishing.Internal.TransformDoneHandler.Microsoft.SharePoint.ISPConversionProcessor.PostProcess(SPExecutingConversionRequest etr, CreateDCInfo cdti, Boolean& runDefaultPostProcessing) at Microsoft.SharePoint.Administration.SPDocumentTransformDriver.Transform(SPWebApplication wa, ExecutingTransformRequest etr) at Microsoft.SharePoint.SPFile.Convert(Guid ConverterId, String newFileName, String configInfo, String handlerAssembly, String handlerClass, Byte priority, String peopleToAlert, Boolean sendACopy, Boolean synchronous, Guid& workItemId) at Microsoft.SharePoint.Publis
