This has been a big issue with the new Microsoft office 2007 software since day 1, new format that is not backwards compatible leaving both users of the new software and old software confused and frustrated. The main issue has been with the xml formats as Microsoft claims has new features; docx, xlsx, pptx, etc. from the original doc, xls, ppt which has been around since at least 1997...
Finally, a download has become available from Microsoft to put a small fix on the problem.
This is like an add-on to your current MS office suit (tested with 2003 so far, let me know if works with xp/2000 in the comments) which basically converts the MS 2007 documents into something readable, the neat feature thogh is that you can still save it as 2007 format (without the new features of course).
Enjoy proprietary freedom in all it's glory
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