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Default Compatability Mode Not Responding

Whenever I try to save an older version of either Excel or Word (both 2003)
into the same version while using the 2007 version, the Compatability Mode
Not Working comes up at the top of the screen. Am using Windows Vista
Ultimate and this happens very frequently. I can either wait a while until
it does respond or turn it off and lose my work and start over. Neither is
acceptible. When it infrequently does work, I have to wait abut 30 seconds
before it will save. I have a fairly new HP computer, so memory is not a
problem neither is disk space. Have also defragmented since installing the
2007 version.
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