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I have 2007 running on an XP machine at work, no issues.
At first I was annoyed with the changes from 2003 to 2007. The biggest change was a switch from drop down menus to the ribbons. Once I adjusted to the changes I liked it a lot. It also helps to add a lot of commonly used functions (especially if they aren't on the ribbons) to the quick toolbar.
It really helps to have a widescreen monitor (or just a large monitor). Some of the ribbons have a lot of information on them.
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