This is because the documents saved in the office 2007 are not backward compatible directly. But there is a very useful and easy add-on available from Microsoft itself.
Microsoft Office Compatibility Pack
http://www.microsoft.com/downloads/details.aspx?FamilyID=941b3470-3ae9-4aee-8f43-c6bb74cd1466&displaylang=en
This compatibility pack will let you open the newer MS office documents with extensions .docx , .xlsx and .pptx with the older versions of MS Office 2003 and Office 2000. You will also be able to open, edit, and save files using the file formats new to Word, Excel, and PowerPoint 2007. You simply need to download Microsoft Office Compatibility Pack and install it on your computer which has the older version of MS office.
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