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This method is recommended to prevent compatibility issue. You have an option to choose a default file format in Word 2007.
Follow instruction below :
• Click on Microsoft Office Button
• Click on “Word Options” button located on the lower-right of the menu.

Remark:
In Excel 2007, the option will be “Excel Options” instead. However, the configuration below is the same.
On the Word Options dialog
• Click on “Save” button in the left pane.
• Click on a combo box located to the right of “Save files in this format” text
• Choose “Word 97-2003 Document (*.doc)”. With this option, your new document will be saved, by default, in Word 97-2003 Document file format. This will minimize a compatibility issue between Word 2007 users and previous version users. Once finish, click OK button

Remark:
In Excel 2007, only one change is from Word 97-2003 Document(*.doc) to Excel 97-2003 (*.xls)
• Next time you click “Save”, the file format will be Word 97-2003 Document as a default. To verify this, you will see “[Compatibility Mode]” in the document title after saving it.

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