Yes, you can just paste all MSP files to Updates folder and build ISO. When you install using this ISO, all updates will be installed during the installation of Office 2010 itself.
I tried successfully what you want following these steps: 1. Create custom MSP: forums.mydigitallife.net/threads/53090-DISCUSSION-WHD-Office-Updates?p=982562&viewfull=1#post982562 2. Use the custom MSP: forums.mydigitallife.net/threads/53090-DISCUSSION-WHD-Office-Updates?p=909253&viewfull=1#post909253 This lets Office 2010 setup (after Office + SP2 updates have been installed) run a script that installs all post-sp2 updates (that you've added manually). Just follow the steps. Not sure if this works for retail versions of Office 2010 as well though.