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I was working on a Word 2007 document last night in LibreOffice and the section breaks and headers/footers had problems. Section breaks doubled, creating many blank pages, and the headers and footers disappeared.
This is a book a friend has been working on. I went into Word 2004 on my iMac and everything was there as it should be.
And to the OP, why are you having to run Lion? You can still buy Snow Leopard for $29 at Apple. Office 2004 will still work in Snow Leopard, that's what I use.
Good question about the Lion. Wife just wants to be up to date on the OS. It's really her machine as I bought it for her as a gift years ago. Not a fan of Apple myself.
Snow Leopard is still supported and quite nice. There are things I don't like about Lion and don't see myself upgrading.
Anything in particular worth mentioning?
The big thing is that Rosetta is not supported. I still have PPC applications that I use, and they can't run under Lion.
I do have to point out that AppleTalk isn't supported in Snow Leopard, either. So if you have an old Laserwriter printer like I do, you need to print through a print server. I have an old mini that does that for me.
So, going to Snow Leopard, you'll lose AppleTalk.
Going to Lion, you lose Rosetta, and the ability to run older PPC software. And you still don't have AppleTalk.
If I was just starting out with a Mac it wouldn't matter to me, but I've been using them since 1990 and have a fair amount invested in what I have.