MS Word 2007 "Save As"

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When about to save a Word 2007 document for the first time (Save As) I am faced with two choices. I can 'Save As' in "Word 97-2003 Document" OR "Word Document". I understand what is going on here, but what I can't figure out is WHY? Now I tend to save everything to "Word 97-2003 Document" simply on the off-chance that I may want to, later on, send a copy as an attachment to someone else who may or may not have MS Word 2007. I often wonder 'what is the difference?' or 'did I lose something in the translation'? If you get my drift.
If MS is so clever, why bother differenciating between the two? Word 2007 could have been designed to be compatible with Word 97-2003 from the start and then I wouldn't be asking this mundane question and I wouldn't have to hover over the two 'Save As' options. Thanks.
Oh, and another thing... how many people use Open Office because MS Office & Student 2007 is so expensive? Is it a good alternative?
drillersmum.

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@drillersmum,

Open Office is an excellent alternative and almost completely compatible, but you will have the same Save As questions since you will want to save in Word format for the same reasons you stated in your message. I found some lack of compatibility saving check boxes in forms.

As to the other part, MS probably added some functionality in 2003. That's not a bad thing since we want our programs to get better over time, but it might cause an issue with very old programs. I used to run Office 2000 all the time without any problems, so this might be a non-issue.

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@drillersmum,

You can select a default save type in options if you don't want to be confronted with options at the time of the save.

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MS Word 2007 "Save As"

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