Until you save the document, it remains in its internal format (as it was
with previous Word versions).
The option sets the default save option.

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Graham Mayor - Word MVP
My web site www.gmayor.com
Word MVP web site http://word.mvps.org
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> My Office Button / Word Options / Save / "Save files in this
> format" is set to: "Word 97 - 2003 Document (*.doc)", but every time
[quoted text clipped - 6 lines]
> new workbook or presentation, you're automatically in [Compatibility
> Mode] when you create a new workbook or presentation.
Tony Jollans - 05 Jul 2007 19:45 GMT
It's worth noting that even after saving the document in 97-2003 format,
Word still isn't really *working* in anything I could describe as a
compatibility mode. Although some one-time changes are made to the document
in memory, it still maintains some 2007 features and new 2007 features can
still be added to the document.

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Enjoy,
Tony
> Until you save the document, it remains in its internal format (as it was
> with previous Word versions).
[quoted text clipped - 10 lines]
>> new workbook or presentation, you're automatically in [Compatibility
>> Mode] when you create a new workbook or presentation.
Graham Mayor - 06 Jul 2007 05:42 GMT
Agreed - the document whilst open in Word is always in Word's internal
format. It is only the saved file that is in a compatible format.

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Graham Mayor - Word MVP
My web site www.gmayor.com
Word MVP web site http://word.mvps.org
<>>< ><<> ><<> <>>< ><<> <>>< <>><<>
> It's worth noting that even after saving the document in 97-2003
> format, Word still isn't really *working* in anything I could
[quoted text clipped - 24 lines]
>>> new workbook or presentation, you're automatically in [Compatibility
>>> Mode] when you create a new workbook or presentation.