Office 2003 had a great run (a very valuable upgrade from XP), but Microsoft is forcing all new purchasers to buy Office 2007.
Not everyone has Office 2007 yet, so for some people saving back into older versions of Office makes most sense. There's also the option of having the 2003 users download the Compatibility Pack. To default your Office 2007 app to save back to 2003 format by default (on every document, without prompting):
1) Click the Office Icon (upper-left corner of screen) and click on the box where it says Word Options (or Excel Options, or whatever app your're in).
2) When the new box opens, select Save on the left-hand side.
3) Once that box opens, the first option is Save Files in This Format. Click the dropdown, and select whichever format you want to default to (Office 2003, etc.).
4) Make sure to click OK to save your changes. When the rest your colleagues catch up and you want to save in 2007 format, simple do the same steps and select Office 2007 format (the first option in the dropdown).
People are always wondering what's in each version of Office, how much they cost, etc. I put up a page with a matrix of applications included in the various Office suites, and the prices for the versions that we sell the most of.
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