If you are using a version of Microsoft office prior to 2007 you wont be able to work with the office 2007 file format. To get around this you must install the Microsoft Office Compatibility Pack for office file formats, additionally you will need to have office 2000, office xp or office 2003. Unfortunately office 97 and previous versions wont work with it. Also I recommend updating your office software via Microsoft update before installing the compatibility pack.
Here is the link for the office compatibility pack
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