Compatibility Checker is one of the most useful features in Word 2007. Word will analyze the document and check for compatibility issues with earlier versions of Word. It’s a good idea to run Compatibility Checker before sending the document if you are not sure whether the recipient uses Office 2007.
For example, if your document contains SmartArt (which is a feature that is not supported in earlier versions of Word), when a colleague using Word 2003 opens your document, the SmartArt graphics will be converted into a single object that cannot be edited.