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Microsoft Excel 2007 has a new File format in which all Excel 2007 documents are saved. This format is the Excel 2007 Workbook format with a file extension of dot xlsx. It is an XML-based file format, as compared to earlier versions of Microsoft Excel, which is the Excel 97 to 2003 format, which has a file extension of dot xls, and is a binary format. This new format preserves all worksheet and chart data as well as all formatting and features that are available to you in the New 2007 release of Excel. Just as in other applications, if you choose a different format for saving your file you can lose some of the data, features, or formatting that you've applied to your workbook. You can also save a spreadsheet in other formats that are supported in Excel. If you go up here to your Office button and choose Save or Save As, you will open a dialog box that presents you with an option, the Save As Type option, which allows you to save your Excel 2007 document in another file format. Be aware that not all of these formats will retain all the data, features, and formatting that you've applied in your spreadsheet. If you want to check your document for compatibility issues you can do so by running Excel's 2007 Compatibility Checker. To initiate the Compatibility Checker, let me first open up a document that has some new features. Notice that in Column C I have Conditional Formatting applied. To initiate the Compatibility Checker I again go to my Office button, pull down To Prepare, and then select Run Compatibility Checker. This will list all the various compatibility issues that might exist within your document. If I click the Find button that can be located next to some of the issues, it will jump directly to where one of the issues exist, in my case, over here in Column C where I have Conditional Formatting applied. I can then either turn off the Conditional Formatting, or delete the data entirely. Let me initiate the Compatibility Checker again to show you a few more features. Also note that you have the following option: Check compatibility when saving this workbook. If this is checked any time that you save the document that you are working on the Compatibility Checker will be run giving you a list of any issues that might have occurred with new features. You also can copy to a new sheet. What this feature does is it will copy, or create a report, of all the compatibility issues and paste them in a new spreadsheet document, which can be a nice feature, especially if you have a lot of issues. The Compatibility Checker is a nice feature as you will find when you work in Excel. You can also open documents that were created in earlier versions of Excel, and I have one opened here. Let me open it up. When you open a workbook that was created in an earlier version of Excel it is automatically opened in the Compatibility Mode. You will see Compatibility Mode up in the title bar next to the name of the worksheet document. Excel 2007 includes the Compatibility Mode for ensuring that Microsoft Excel 2007 does not have compatibility issues that can cause significant loss of function or a minor loss of fidelity in an earlier version of an Excel document. When the workbook is saved it is saved in the Excel 97 to 2003 file format, or the dot xls format, which again is a binary format. This allows the workbook to be opened in an earlier version of Excel. The Compatibility Mode of Excel 2007 cannot be turned on or off which is a feature of other Office 2007 products, and if you are working in the Compatibility Mode in Excel you cannot use any of the Excel 2007 new features. They are automatically turned off or inaccessible. If you no longer want to use the Compatibility Mode of Excel 2007 you must upgrade the workbook to the new XML-based format of Excel 2007 by saving in that format. Now Microsoft also has provided a means for earlier versions of Excel to open a workbook that has been saved in Excel 2007 format through updates and file converters that are available on Microsoft Office Online Website. I have Microsoft Office Online Website open right now and notice that it will provide you information about Microsoft Office products as well as you can do a search for the various updates and converters that you need to update your version of an earlier version of Excel so that it can open 2007 documents. You can see that Microsoft has provided quite a few features for backwards as well as forward compatibility when you are working in Excel 2007.