Use Word 2007 to open documents created in previous versions of Word
When  you open a document in Microsoft Office Word 2007 that was created in Microsoft  Office Word 2003, Word 2002, or Word 2000, Compatibility Mode is turned on, and  you see Compatibility Mode in the title bar of the document window.  Compatibility Mode ensures that no new or enhanced features in Office Word 2007  are available while you are working with a document, so that people who are  using previous versions of Word will have full editing capabilities.  Find this yourself at help center of MS Word  2007.
You  can work in Compatibility Mode or you can convert your document to the Office  Word 2007 file format. Converting your document allows you to access the new and  enhanced features in Office Word 2007. However, people who are using previous  versions of Word may be prevented from or have difficulty editing certain  portions of the document that were created by using new or enhanced features in  Office Word 2007.
Work  in Compatibility Mode
When  you open a Word 972003 document in Office Word 2007, Compatibility Mode is  turned on, and you see Compatibility Mode in the title bar of the  document window. In Compatibility Mode, you can open, edit, and save Word  972003 documents but you won't be able to use any of the new Office Word 2007  features. 
Document  elements that behave differently in Compatibility Mode
The  following elements will be permanently changed when you are working in  Compatibility Mode, and you cannot convert them to Office Word 2007 elements  even if you convert your document later.
|         Office        Word 2007 element  |              Behavior        in Compatibility Mode  | 
|         Heading        and body fonts  |              Converted        to static formatting.  | 
|         Relative        text boxes  |              Converted        to absolute positions.  | 
|         Margins  |              Converted        to absolute tabs.  | 
|         Bibliography  |              Converted        to static text.  | 
|         Citations  |              Converted        to static text.  | 
|         Placeholder        text in citations  |              Converted        to static text.  | 
|         Placeholder        text in content controls  |              Converted        to static text.  | 
|         Themes  |              Permanently        converted to styles. If the file is later opened in Office Word 2007, you        cannot automatically change the style by using        themes.  | 
|         Theme        colors  |              Permanently        converted to styles. If the file is later opened in Office Word 2007, you        cannot automatically change the style by using theme        colors.  | 
|         Theme        fonts  |              Permanently        converted to styles. If the file is later opened in Office Word 2007, you        cannot automatically change the style by using theme        fonts.  | 
|         Theme        effects  |              Permanently        converted to styles. If the file is later opened in Office Word 2007, you        cannot automatically change the style by using theme        effects.  | 
|         Content        controls  |              Permanently        converted to static text.  | 
The  following document elements will be changed when you are working in  Compatibility Mode, but you can convert them to Office Word 2007 elements if you  convert your document later.
|         Office        Word 2007 element  |              Behavior        in Compatibility Mode  | 
|         Office        Art  |              Only        a limited set of diagram types is available..  | 
|         Diagrams  |              Converted        to images that cannot be edited.  | 
|         Equations  |              Become        graphics and cannot be changed.  | 
Convert  a document to Office Word 2007
1.      Click  the Microsoft Office Button, and then click Convert.  
2.      In  the Microsoft Office Word dialog box, click OK.  
3.      Do  one of the following: 
§   To  replace the original file with a file in the Office Word 2007 file format, click  the Microsoft Office Button, and then click Save.  
§   To  save the original document in its original file format and create another  document in the Office Word 2007 file format, click the Microsoft Office  Button, click Save As, and then type a new name for the  file.











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