Microsoft introduced Office 2007 to the public in January of 2007, but I've been using the beta for a year. This is the best version of Office yet. I will admit that the "ribbon" interface took a while to get used to, but once you do, you'll be more efficient than you were in Office 2003 or XP. I recommend upgrading.
For those of you still running Office XP or 2003, you can now open and save Office 2007 document formats by downloading and installing the compatibility pack available here.