Interesting times...
While the best way to minimize compatibility issues is to standardize your environment on a single file format, many organizations will need to deploy the 2007 Microsoft Office system in a phased rollout, or will need to collaborate with other companies. For this reason, Microsoft Office Excel 2007, Microsoft Office Word 2007, and Microsoft Office PowerPoint 2007 contain features to ensure compatibility with previous versions of Office. You can use the Microsoft Office Compatibility Pack to allow backward compatibility, so that previous versions of Office can open and save files in the new file format. In addition, the openness of the new file format makes it more compatible with non-Office programs.
Link to Collaborating with previous versions of Office and other programs
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